June Jobs numbers came in around expectations of +202,000. Historically, that’s a decent number. However, 70,000 of the new jobs were created by government. Revised numbers for April and May showed that there were 111,000 fewer jobs created than first estimated. The number of job openings in the JOLTS report was revised down in April. Wage growth cooled and the unemployment rate inched up.
These statistics indicate a nuanced picture of the job market, where the headline figure of job creation masks underlying issues. While the total number of jobs added may seem positive, a closer look reveals concerning trends. The significant portion of government-created jobs suggests a reliance on public sector employment rather than sustainable private sector growth. The revisions to previous months' data highlight the volatility and uncertainty in the job market, casting doubt on the strength of the economy's recovery. Furthermore, the downward revision in job openings signals potential challenges in matching available positions with qualified candidates, pointing to a potential skills gap or mismatch in the labor market.

The Highlights
· Nonfarm payrolls expanded by 202,000 for the month, in line with expectations.
· The unemployment rate rose to 4.1%.
· Job gains were concentrated in health care and government, consistent with recent trends.
· Average hourly earnings slowed, rising 0.3% on the month and 3.90% from a year ago.
· Long-term unemployment rose sharply on the month, up 166,000 to 1.5 million, compared with 1.1 million a year ago. The BLS said the share of long-term unemployed as a percentage of the total jobless level was 22.2%, compared with 18.8% a year ago.
For a deeper dive….
· A more encompassing measure of unemployment (U6) that includes discouraged workers and those holding part-time jobs for economic reasons stayed flat at 7.4%.
· Prime age labor force participation rate (ages 25-54) was up .1% to 83.7%.
· The overall labor force participation rose .1% to 62.6%. This is still .6% below the level of February 2020.
· In June, average hourly earnings for all employees on private nonfarm payrolls increased by 10 cents, or 0.3 percent, to $35.00. Over the past 12 months, average hourly earnings have increased by 3.9 percent. In June, average hourly earnings of private-sector production and nonsupervisory employees increased by 10 cents, or 0.3 percent, to $30.05.
· In June, the average workweek for all employees on private nonfarm payrolls was 34.3 hours for the third consecutive month. In manufacturing, the average workweek was unchanged at 40.2 hours, and overtime remained at 3.0 hours. The average workweek for production and
nonsupervisory employees on private nonfarm payrolls edged down by 0.1 hour to 33.7 hours.
· APD is reported that 150,000 jobs were added in June. 2,000 less than June.
Source: ADP, BLS, CNBC, Fox News
JOB OPENINGS AND LABOR TURNOVER – MAY 2024
The number of job openings changed little at 8.1 million on the last business day of May, the U.S. Bureau of Labor Statistics reported today. Over the month, both the number of hires and total separations were little changed at 5.8 million and 5.4 million, respectively. Within separations, quits (3.5 million) and layoffs and discharges (1.7 million) changed little. This release includes estimates of the number and rate of job openings, hires, and separations for the total nonfarm sector, by industry, and by establishment size class.
Job Openings
On the last business day of May, the number of job openings changed little at 8.1 million. This measure was down by 1.2 million over the year. The job openings rate was little changed at 4.9 percent in May. Job openings decreased in accommodation and food services (-147,000) and in private educational services (-34,000). The number of job openings increased in state and local government, excluding education (+117,000), durable goods manufacturing (+97,000), and federal government (+37,000).
Hires
In May, the number of hires was little changed at 5.8 million. Over the year, hires were down by 415,000. The hires rate was little changed at 3.6 percent in May.
Separations
Total separations include quits, layoffs and discharges, and other separations. Quits are generally voluntary separations initiated by the employee. Therefore, the quits rate can serve as a measure of workers’ willingness or ability to leave jobs. Layoffs and discharges are involuntary separations initiated by the employer. Other separations include separations due to retirement, death, disability, and transfers of other locations of the same firm.
The number of total separations in May changed little at 5.4 million. This measure was down by 424,000 over the year. The total separations rate remained unchanged at 3.4 percent in May.
In May, the number of quits was little changed at 3.5 million. Over the year, quits were down by 550,000. The quits rate was 2.2 percent in May, the seventh month in a row.
In May, the number of layoffs and discharges changed little at 1.7 million, and the rate remained unchanged at 1.0 percent.
The number of other separations was little changed in May at 309,000.
Establishment Size Class
In May, for establishments with 1 to 9 employees, the job openings rate, hires rate, and total separations rate changed little. For establishments with 5,000 or more employees, the layoffs and discharges rate increased while the job openings rate, hires rate, and total separations rate changed little.
April 2024 Revisions
The number of job openings for April was revised down by 140,000 to 7.9 million, the number of hires was revised down by 25,000 to 5.6 million, and the number of total separations was revised down by 35,000 to 5.3 million. Within separations, the number of quits was revised down by 55,000 to 3.5 million and the number of layoffs and discharges was revised up by 27,000 to 1.5 million. (Monthly revisions result from additional reports received from businesses and government agencies since the last published estimates and from the recalculation of seasonal factors.)
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