Thursday, July 02, 2015

June Employment Report: 223,000 Jobs, 5.3% Unemployment Rate

by Bill McBride on 7/02/2015 08:33:00 AM

From the BLS:

Total nonfarm payroll employment increased by 223,000 in June, and the unemployment rate declined to 5.3 percent, the U.S. Bureau of Labor Statistics reported today. Job gains occurred in professional and business services, health care, retail trade, financial activities, and in transportation and warehousing.
...
The change in total nonfarm payroll employment for April was revised from +221,000 to +187,000, and the change for May was revised from +280,000 to +254,000. With these revisions, employment gains in April and May combined were 60,000 lower than previously reported.
...
In June, average hourly earnings for all employees on private nonfarm payrolls were unchanged at $24.95. Over the year, average hourly earnings have risen by 2.0 percent.
emphasis added
Payroll jobs added per monthClick on graph for larger image.

The first graph shows the monthly change in payroll jobs, ex-Census (meaning the impact of the decennial Census temporary hires and layoffs is removed - mostly in 2010 - to show the underlying payroll changes).

Total payrolls increased by 223 thousand in June (private payrolls also increased 223 thousand).

Payrolls for April and May were revised down by a combined 60 thousand.

Year-over-year change employmentThis graph shows the year-over-year change in total non-farm employment since 1968.

In June, the year-over-year change was over 2.9 million jobs.

That is a solid year-over-year gain.


Employment Pop Ratio, participation and unemployment ratesThe third graph shows the employment population ratio and the participation rate.

The Labor Force Participation Rate decreased in June to 62.6%. This is the percentage of the working age population in the labor force.   A large portion of the recent decline in the participation rate is due to demographics.

The Employment-Population ratio decreased to 59.3% (black line).

I'll post the 25 to 54 age group employment-population ratio graph later.

unemployment rateThe fourth graph shows the unemployment rate.

The unemployment rate decreased in June to 5.3%.

This was below expectations of 228,000 jobs, and revisions were down, and no wage growth (some wage weakness is seasonal)  ... still a decent report.

I'll have much more later ...