US Economy Adds 850K Jobs as Hiring Spree Accelerates

Following what were 10 straight months of subdued payroll figures, the Bureau of Labour Statistics finally did not disappoint, as the US economy added 850,000 new jobs in June, which is significantly more than the 720,000 that were forecast by economists polled by Bloomberg and nearly 50% higher than May’s payroll increase of 583,000.

Source: BLS

In a sign that America’s persistent labour shortages may soon be abating, nonfarm payrolls rose by 850,000 in June, amid strengthening job gains in the leisure and hospitality sector. Despite this, however, the unemployment rate rose to 5.9% as an increased number of Americans voluntarily abandoned their positions while the number of people actively searching for a job increased.

Source: BLS

The latest figures suggest that employers are finally gaining momentum in recruiting workers that were previously furloughed. The demand for labour has been booming, as employers attempt to keep up with the reopening of the economy, and the subsequent surge in consumer demand for goods and services. This has caused wage growth to also pick up, as businesses are forced to increase pay in an effort to attract applicants. The latest BLS jobs report showed that average hourly earnings rose 0.3% in June, marking a year-over-year increase of 3.6%.

However, total US payrolls are still 6.76 million below pre-pandemic levels, and although the latest gain significantly exceeds expectations, it still likely will not create added pressure on the Federal Reserve to pare back its current monetary policies.


Information for this briefing was found via the BLS and Bloomberg. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

First Majestic Q2 Earnings: Another Record Quarter

Sandstorm Gold Fades Into Royal Gold Merger

Equinox Gold Q2 Earnings: Back On Track

Recommended

Emerita Resources Expands El Cura Drill Program By 10,000 Metres As Deposit Remains Open For Expansion

ESGold Signs MOU For Tailings Project In Colombia With Grades Up To 42 g/t Gold, 280 g/t Silver

Related News

US Initial Jobless Claims on the Rise Again as Soaring Covid Cases Crush Labour Market

The US labour market recovery appears to be stalling amid a surge in coronavirus cases...

Wednesday, November 25, 2020, 02:30:00 PM

US Economy Suffers Significant GDP Decline in First Quarter, Unemployment Levels to Continue Soaring

The US Commerce Department has issued a grim statement regarding the current state of the...

Thursday, April 30, 2020, 06:15:00 AM

US Labour Market Shows Signs of Rebound as Unemployment Rate Falls to 8.4% in August

South of the border, it appears that the US labour market has been the subject...

Monday, September 7, 2020, 01:25:00 PM

Canada’s Economy Only Recoups 418.5K Jobs in July, Suggesting Labour Market Recovery has Plateaued

Canada’s economy appears to be steadily improving from the effects of the coronavirus pandemic, as...

Saturday, August 8, 2020, 11:35:00 AM

US Initial Jobless Claims Decline by Only 10,000, Smallest Drop Since March

Despite the US government funnelling trillions of dollars’ worth of liquidity into the economy, the...

Friday, July 17, 2020, 05:11:00 PM