United States: Payrolls disappoint in June
July 6, 2012
In June, non-farm payrolls advanced by 80,000, which was slightly up from the revised 77,000 increase observed in May (previously reported: 69,000 jobs). The figure, however, undershot market expectations, which had anticipated payrolls rising by 100,000. The private sector continued to be entirely responsible for new hiring by adding 84,000 jobs, with professional and business services recording the largest gains. Meanwhile, the public sector maintained the negative trend seen throughout the past year, shedding 4,000 jobs. The monthly figure marks the 21th consecutive month with gains in non-farm payrolls and the U.S. economy has now recovered 3.8 million jobs since February 2010, which marked the trough of the crisis in the labour market. That said, the level of job creation has slowed to an average of 75,000 per month in the second quarter, the lowest level observed since the start of the recovery in 2010. In addition, despite the improvement seen in the past two years, the economy still remains 4.9 million jobs below the peak reached in January 2008. Meanwhile, the unemployment rate remained unchanged at May's 8.2%. The figure mainly reflected a similar increase in both the labour force as well as in the level of employed workers. As a result, the labour force participation rate remained stable at May's 58.6%.