Topline
The United States added 850,000 jobs in June, according to data released Friday by the Labor Department, as reopenings and vaccinations continue to boost hiring.
Bartender Olivia Imes prepares a drink at P.J. Whelihan’s restaurant and pub in Spring Township, … [+]
Key Facts
Most experts were expecting a gain of 720,000 jobs in June, according to Goldman Sachs, up from a gain of 559,000 in May.
Most of the gains last month came from the leisure and hospitality, education, retail and service industries, the Labor Department said—industries that were hit hardest by the pandemic.
“The reopening of the economy, bolstered by the successful vaccination effort, is helping to put people back to work,” says Bankrate senior economic analyst Mark Hamrick.
The unemployment rate, however, ticked up slightly, from 5.8% in May to 5.9% in June.
Big Number
9.5 million. That’s how many people were unemployed in the United States in June, according to Friday’s data, up from 9.3 million in May but down from 9.8 million in April.
Surprising Fact
Hawaii is the only state in the country that has yet to fully reopen.
Key Background
Friday’s encouraging labor market data comes as policymakers in Washington keep a close eye on inflation—some have suggested that overly generous government unemployment benefits (including a $300 weekly unemployment supplement) might actually hurt the recovery and cause dangerous overheating. More than half of states have announced an early termination of that $300 supplement. Last month, the Federal Reserve kept interest rates at near-zero levels but members of the central bank’s committee signaled that they are looking ahead to two interest rate hikes by the end of 2023.
Further Reading
U.S. Added 559,000 Jobs In May—Less Than Experts Were Expecting But Better Than April’s Dismal Data (Forbes)
New Poll Finds 52% Of Americans Believe $300 Weekly Federal Unemployment Boost Should End Immediately (Forbes)
Inflation Alarm Bells Are Ringing, So Why Didn’t The Fed Raise Rates This Month? (Forbes)
Here’s What Could Happen When $300 Unemployment Expires, According To Goldman Sachs (Forbes)
