July 18, 2016 – Employers added 287,000 jobs last month as the U.S. unemployment rate rose to 4.9 percent, according to the most recent U.S. Bureau of Labor Statistics report. The number of workers unemployed increased by 347,000 to 7.8 million.
Economists surveyed by Reuters said they were, on average, expecting nonfarm payrolls to show growth of 175,000 for June, and the unemployment rate to rise to 4.8 percent.
This report follows the addition of only added 38,000 jobs in May and an unemployment rate of 4.7 percent. This marked the fewest number of jobs created in more than five year.
“The economy added 287,000 jobs in June, a bounce-back from May’s low number and a clear indication that the economy continues to make solid progress,” White House council of economic advisers chairman Jason Furman said in a statement.
During the month, job growth occurred in leisure and hospitality, healthcare and social assistance, as well as financial services. Job losses continued within the mining sector.
Here’s a closer look at some of the primary sectors involved:
- Leisure and hospitality added 59,000 jobs in June after changing little in the prior month. During the month, employment increased in performing arts and spectator sports (+14,000), after edging down in May. Job gains in leisure and hospitality have averaged 27,000 per month thus far this year, down from an average of 37,000 in 2015, reflecting slower job growth in food services;
- Healthcare and social assistance employment rose by 58,000, with increases occurring in ambulatory healthcare services (+19,000) and hospitals (+15,000), about in line with average monthly gains over the prior 12 months in each industry. Within social assistance, child day care services added 15,000 jobs in June — another sign, perhaps, that working parents are back on the job;
- Employment in financial activities increased by 16,000 during the month and has risen by 163,000 over the year;
- Employment in information increased by 44,000 in June. Employment in telecommunications also increased (+28,000), largely reflecting the return of workers from a strike. Employment increased in the motion picture and sound recording industries (+11,000), after a decrease of similar magnitude in May;
- Employment in professional and business services continued to trend up in June (+38,000). Thus far this year, the industry has added an average of 30,000 jobs per month, compared with an average monthly gain of 52,000 in 2015;
- Employment in retail trade edged up by 30,000 in June, after changing little over the prior two months. In June, job gains occurred in general merchandise stores (+9,000) and in health and personal care stories (+5,000). Retail trade has added 313,000 jobs over the year;
- Mining employment continued to decline in June (-6,000). Since reaching a peak in September 2014, employment in mining has decreased by 211,000, with more than three-fourths of the loss in support activities for mining;
- Employment in other major industries, including construction, manufacturing, wholesale trade, transportation & warehousing, and government showed little or no change over the month.
The report follows moderate hiring plans from employers throughout the U.S. According to the latest Manpower Employment Outlook Survey, 23 percent of employers anticipate increasing staff levels during the third quarter.
“Although employers have been increasingly cautious for the last three quarters, the U.S. hiring outlook is among the strongest globally, and we expect to see modest improvements in the labor market throughout most of the country,” said Kip Wright, senior vice president of Manpower in North America. “This is good news for job seekers and organizations; as the competition for talent heats up, the way in which companies engage individuals is more critical than ever. Employers need to ensure they have the skills and resources they need – right when they need them.”
Other studies have been equally optimistic, no matter what else seems to be happening on the American political scene or over in the U.K., following the country’s vote to cut trading ties with the European Union.
Eighty-four percent of HR leaders in the U.S. say they are hiring for full-time positions, according to the recent report by recruiting services company LaSalle Network. The survey also found that 70 percent of respondents feel optimistic about the economy for the remainder of 2016. Leaders within the healthcare, technology, and education industries were more optimistic about their hiring plans.
“The economy is strong and has been strong for a while,” said Tom Gimbel, LaSalle Network founder and CEO. “Companies are hiring and investing resources into their businesses again, especially in high growth sectors like technology and healthcare.”
According CareerBuilder’s annual job forecast, 36 percent of employers are planning to add full time, permanent employees in 2016. Comparing industries, financial services (46 percent), information technology (44 percent), and healthcare (43 percent) are expected to outperform the national average for employers adding full-time staff. Manufacturing (37 percent) is expected to mirror the national average.
According to the ‘2016 Hiring Outlook: Strategies for Adapting to a Candidate-Driven Market’ report released by The Execu | Search Group, 66 percent of employers plan to hire additional staff this year.
And with companies expecting to hire, employees have their eyes set on new positions. Twenty one percent of workers plan to look for new jobs, according to a study released by Penna. Forty eight percent of people claimed the main reason for the change was that they were searching for better pay and benefits. Another 44 percent said it was down to the promise of greater development opportunities, while 32 percent said they were simply looking for a change in career direction. Penna’s survey found that employees aged 18 to 24 were the most likely to be planning a move this year, while 25 percent of those aged 25 to 34 are considering leaving their posts.
Contributed by Scott A. Scanlon, Editor-in-Chief, Hunt Scanlon Media