United States: Payrolls post another solid gain and unemployment drops to 6.1%
July 3, 2014
Non-farm payrolls grew by 288,000 in June, which was above May’s upwardly revised increase of 224,000 (previously reported: +217,000). The reading exceeded market expectations of a 211,000 increase in payrolls. This is the fifth consecutive month in which payrolls have increased by more than 200,000.
The private sector was almost entirely responsible for new hiring, having added 262,000 jobs in June. The largest gains were registered in professional and business services; retail, leisure and hospitality; and in education and health services. The public sector added 26,000 jobs. The U.S. economy has recovered 9.1 million jobs since February 2010, which marked the trough in the labor market crisis. In fact, the economy now has 415,000 more people employed than at the January 2008 peak.
The unemployment rate—derived from a different survey—decreased from 6.3% in May to 6.1% in June. The reading, which is the best result since September 2008, beat market expectations of the rate holding steady at 6.3%. The labor force participation rate was unchanged at 62.8%.
Author: Carl Kelly, Economist