The jobs report released by the Bureau of Labor Statistics each month has seen an almost unprecedented string of positive results over the last 18 to 24 months.
The May jobs report revealed the lowest unemployment rate (3.8%) in 18 years, while adding 223,000 jobs. Going in to June, economists and industry experts expected another strong showing when the Bureau of Labor Statistics released their new findings.
On Friday, the latest statistics were revealed
, and showed yet another strong month for the labor market and United States economy.
The United States Economy Added Jobs for the 93rd Consecutive Month
Going into the month of June, experts expected 195,000 new jobs to be added to the market. However, the actual results far surpassed these predictions.
In June, the U.S. economy added 213,000 new jobs
, making this the 93rd
straight month that employers added to payrolls.
This year the United States economy has average around 200,000 new jobs each month
, which is an impressive number.
Given some events that have gone on, and how experts believed they would negatively impact job growth, June’s numbers were seen as extremely positive.
Unemployment Rate Rose in June
In May, the unemployment rate in the United States fell to an 18 year low of 3.8%
. Based on this number and other trends in the economy, it was predicted that the unemployment rate would stay at 3.8% in June.
But the unemployment actually rose in June to 4.0%
, the first time this number has increased in a year. At first glance this might look like a negative outcome, but digging deeper explains that this rise is actually a sign of a healthy economy.
That’s because in June more than 600,000 Americans joined the workforce, meaning that they were actively looking for work
, and counted against the unemployment number.
This is another sign that the economy is healthy, with Americans seeing an increased opportunity to find a job due to the labor market conditions and other economic factors.
Wage Growth Remains Slow
Despite most of the positive results from the June jobs report, not all the statistics were encouraging. One trend in recent months that is concerning to experts is how sluggish wage growth is
in the United States.
Many had hoped that the June numbers would show an increase from last month. However, wage growth stayed the same in June at 2.7%.
Additionally, annual wage growth hasn’t exceeded 3% since 2009. Given the low unemployment rate and continued job growth, many thought these would add pressure for employers to increase pay
Experts are still hopeful that wage growth numbers will start to grow in the coming months.
What’s In Store for the July 2018 Jobs Report?
Overall, the June 2018 jobs report was a positive indicator of the United States economy and the job market.
While there are still some areas for improvement, industry experts and economists are generally happy with the results, and expect further growth in the future. We’ll have to wait until the July jobs report is released to find out!
Want to learn more about PEOs? Check out our eBook, How Well Do You Know PEO? This eBook provides an overview of the PEO industry as well as helpful information for brokers and employers!