Keeping you up to date on the latest data releases.
Nonfarm payrolls slipped down by 125,000 in June, though that was on a 225,000 decrease in temporary Census takers. Private payrolls rose 83,000 during the month and have increased by 593,000 since the first of the year, but are still 7.9 million below its level in December 2007. While June’s increase in private payrolls is an improvement over May’s downwardly revised 33,000, it is still under-performing the 3-month average gain of roughly 150,000 prior to May. Across sectors, gains were paltry though fairly widespread. Notably, temporary help services continues to bolster the overall increase in private payrolls, adding 20,500 workers in June and is now up nearly 200,000 for the year. Another relatively large increase came from the leisure and hospitality sector, which rose by 37,000. However, delving into the weeds reveals that the gain was driven mostly by a 28,000 increase in amusements, gambling, and recreation employment that followed a 16,000 loss in May (likely a seasonal adjustment or measurement issue). Goods-producing employment was fell by 8,000 in June, as construction employment followed up a 30,000 dip in May with a 22,000 loss and gains in the manufacturing sector slowed down—from an average of 30,000 over the past three months to 9,000 in June. The average workweek for all employees ticked down 0.1 hour to 34.1 hours in June (its first decline since February), largely on a 0.5 hour drop in the manufacturing workweek to 40.0 hours. Average hourly earnings of all employees were nudged down 2 cents to $22.53 in June, while average hourly earnings of production and nonsupervisory workers were flat at $19.00.The unemployment rate ticked down from 9.7 percent to 9.5 percent in June, as 652,000 people (or 0.4 percent) left the labor force in June. A decrease of this magnitude has only happened two other times since the 1990 recession: recently in December 2009 (down 0.4 percent), and in May 1995 (down 0.6 percent). A less noisy indicator of labor market duress—employment-to-population ratio—ticked down from 58.7 percent to 58.5 percent in June, 4.2 percentage points below its level at the start of the recession.