The June jobs report came out this morning with a show of steady growth, despite concerns about growing uncertainty in the U.S. economy. After the release of last month’s report with 139,000 new jobs, which has since been revised down (more on that below), June’s report added an additional 147,000 jobs to the American job market. While economic experts were pleased to see the number of new jobs, there are concerns swirling around these figures. One of the issues is that job growth seems to be limited to only a few areas, including healthcare, hospitality, and state and local government. Private sector growth is the smallest it has been since last October and is not expected to make any growth soon. As usual, we will be covering more of the specifics below. Consumers and economists alike continue to be concerned for the future of the American economy, and with good reason. Trump’s potential tariffs with Canada are a worry, but the looming threat of war also stays in the back of many minds. With all of that in mind, the LZBlog is ready to dive into the new report.
As stated above, 139,000 jobs were added in May, but that report was increased this week up to 144,000 jobs. This morning, the stock market opened higher, with marginal gains of roughly 365 points. Unemployment fell to 4.1%. The number of jobs in the Trucking and Warehouse industries stayed relatively the same in June. As usual, we’ll have more on that sector further down!
May's Job Opening and Turnover Survey
In May, the Job Opening and Turnover Survey showed some slight changes from previous reports over the last few months. With the original report showing 139,000 new jobs created, it was a small surprise to see it increased by nearly 5,000 jobs. April’s new job numbers were revised up to 158,000. The number of job openings moved upward, now listed at 7.8 million. Quits (listed at 3.3 million) and layoffs and discharges (reported at 1.6 million) have not shown many changes either. While layoffs and discharges did not change in the Transportation and Warehousing sector, they decreased in the finance and insurance by 47,000. As stated above, the quit rate is at 3.2 million for the year so far. From month to month, the quit rate remains little changed at 2.1%.
June's Jobs Report
For the month of June, Non-farm payrolls grew by 147,000. This slow, but steady growth is not doing anything to deter the concerns of economic experts after months of uncertainty due to the president’s chaotic executive orders and tariffs. The news has given a small boost to the stock market this morning of 365 points. However, with job growth limited to only a few industries, economists are still worried about what these numbers mean. While, on the surface, job growth is a good thing, the private sector is struggling to create new jobs. This is seen as a symptom of the economic uncertainty that has been brewing since the beginning of the year. Now, the President’s “Big, Beautiful Bill” is creating more concern for those dependent on SNAP benefits and Medicare. With more ICE arrests and deportations, those worries are further exacerbated. Even though unemployment fell to 4.1%, experts agree that this may come from contractions in the market over job creation. The labor force participation rate for June fell slightly to 62.3%.
Last month, the Healthcare industry, which has been steadily adding small numbers of jobs every month for over a year, added another 39,000 jobs in June. In Government, the decline of federal jobs continued by an additional 7,000. Social assistance employment also continued to increase by 19,000 jobs in June. Transportation and Warehousing industries showed little change last month, stalling on the year’s gains to date. It seems that the industry is waiting to see how, and if, Trump’s tariffs will affect their loads. There were also almost no changes in the mining, construction, manufacturing, retail, financial activities, and hospitality industries. As stated above, the private sector seems to be waiting with bated breath to see what happens with the economy.
Conclusion
The June Jobs Report came out today with higher than expected numbers, but it has done nothing to allay the fears of economists and consumers alike. The May Survey was revised upward compared to April’s report. With the tariffs and inflation concerns June’s job report was met with limited enthusiasm from the market or economic experts. For another month, job creation continued, but unemployment stayed virtually the same for June. Stay tuned to the LZ Blog and our Lionzone social media to follow the job market!
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Meaghan Goldberg covers recruitment and digital marketing for Lionzone. A Patterson, GA native, after graduating from both Valdosta State University and Middle Tennessee State University, Meaghan joined Lionzone in 2018 as a digital recruitment strategist before becoming the social media manager.
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