Friday, July 5, 2013

Job Creation Surged in June as Unemployment Remains Constant

The U.S. economy added 195,000 jobs in June, with strong upward revisions to past reports as well. Unemployment remained constant at 7.6%. May’s job growth was revised up from 175,000 to 195,000 jobs. April’s numbers were revised up as well to 199,000 jobs. The cumulative revisions added 70,000 jobs over the previous two months. Overall, June’s report is encouraging.

As seen in past months, June’s strong numbers resulted from positive growth in the private sector, particularly the services industry, which added 187,000 jobs. The private sector industry as a whole added 202,000 jobs, and saw positive revisions to the previous two months. The goods producing sector saw an 8,000 job gain, following two months of no gains and losses.

The government continues to drag on job growth, shedding 7,000 jobs in June, and above the 6 month average of 4,000 jobs lost per month. Due to sequestration, government employment loss is expected through the remainder of this fiscal year.

The unemployment rate remained constant at 7.6% as the labor force participation increased to 63.5%. Previous discouraged job seekers are returning to the labor market.

Read the BLS release.

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