Jobs bounce back in June after terrible May

Jobs bounce back in June after terrible May
© Getty Images

The U.S. economy added a robust 287,000 jobs in June, well above expectations after a dismal May report.

ADVERTISEMENT

The unemployment rate ticked up to 4.9 percent from 4.7 as 414,000 workers jumped back into the market, the Labor Department reported on Friday.

Economists had forecast about 170,000 jobs would be added last month.

The jobs growth should stave off any chatter that the economy was experiencing a broader slowdown.

“There is a clear slowing in the pace of job growth as the labor market tightens but the apparent and worrisome abrupt slowdown in April and May greatly overstated that degree of slowdown,” said Stuart Hoffman, PNC’s chief economist.

April’s figure was better than first reported, rising to 144,000 from 123,000. But May, considered a blip on the economic radar, was worse, falling to 11,000 jobs from the initially reported 38,000, which had been the worst monthly report in six years.

“There is a clear slowing in the pace of job growth as the labor market tightens but the apparent and worrisome abrupt slowdown in April and May greatly overstated that degree of slowdown,” said Stuart Hoffman, PNC’s chief economist.

House Ways and Means Committee Chairman Kevin BradyKevin Patrick BradyOn The Money: Five takeaways from the July jobs report Stimulus checks debate now focuses on size, eligibility Pelosi huddles with chairmen on surprise billing but deal elusive MORE (R-Texas) said that “Americans are rightly concerned about our economic growth and deserve a better way forward.”

“We can and must do better, Brady said.

Jason FurmanJason FurmanIn surprise, unemployment rate falls, economy adds jobs Overnight Health Care: Global coronavirus cases top 1M | Cities across country in danger of becoming new hotspots | Trump to recommend certain Americans wear masks | Record 6.6M file jobless claims The Memo: Scale of economic crisis sends shudders through nation MORE, chairman of the Council of Economic Advisers, said June’s rebound is a “clear indication that the economy continues to make solid progress.”

U.S. businesses have added 14.8 million jobs since early 2010.

So far this year, job growth has averaged a 172,000 jobs a month, well above the pace needed to maintain a low and stable unemployment rate, Furman said.

Donald TrumpDonald John TrumpJoe Arpaio loses bid for his old position as sheriff Trump brushes off view that Russia denigrating Biden: 'Nobody's been tougher on Russia than I have' Trump tees up executive orders on economy but won't sign yet MORE, the presumptive Republican presidential nominee, has tapped into the economic anxieties of voters, calling for the renegotiation or withdrawal of the United States from massive trade deals such as the North American Free Trade Agreement and the Trans-Pacific Partnership.

“Economic unease is among the frustrations that have boiled over, presented in this fractious campaign season,” said Mark Hamrick, Bankrate.com senior economic analyst.

“As for the June jobs report, it gives us a sense that the U.S. economy remains reasonably stable, so far, in the face of post-Brexit vote, financial markets volatility and the prospect of further headwinds blowing ashore here from abroad,” Hamrick said.

Manufacturers and the White House continued their calls for Congress to pass the TPP this year as a means to bolster economic growth.

National Association of Manufacturers President and CEO Jay Timmons said it is “frustrating for manufacturers to hear both major party candidates pretend the solution is to bash free trade and perpetuate myths about the Trans-Pacific Partnership and trade agreements in general.”

“It’s time for this isolationist rhetoric to stop,” Timmons said.

“It helps no one — except our competitors in the global economy," added.

"The United States should be writing the rules on trade.”

In the past three months, including two that underperformed, job gains averaged 147,000 a month.

Manufacturing added 14,000 jobs last month, a positive for the sector that has been battling global headwinds, including a strong dollar that makes U.S. exports more expensive abroad.

“More work remains to sustain faster wage growth and to ensure that the benefits of the recovery are broadly shared, including investing in infrastructure and job training, implementing high-standards trade agreements like the Trans-Pacific Partnership, and raising the minimum wage,” Furman said.

In the past three months, including two that underperformed, job gains averaged 147,000 a month.

Satyam Panday, U.S. Economist, S&P Global Ratings, said that “slow but steady seems to be the prevailing long-term trend for U.S. jobs and the economy.”

“It still has room for improvement,” Panday said.

Panday said he expects the three-month average of jobs growth should rise to 165,000 for the rest of the year before settling at around 130,000 level next year, when the economy is expected to have reached full employment.

Leisure and hospitality jobs rebounded in June by adding 59,000 jobs after losing 3,000 in May.

Employment in mining lost 6,000 jobs in June. Since reaching a peak in September 2014, mining has lost 211,000 jobs.

Construction added no jobs last month. Healthcare and social assistance added 58,000 jobs.

Financial services jobs rose by 16,000 in June and has risen by 163,000 over the year.

Retailers added 30,000 jobs in June while jobs in information expanded by 44,000.

—Last updated at 11:25 a.m.