Job growth in June was driven by industries recuperating from pandemic-induced losses, and continued business investment in sectors still benefiting from formidable demand for his or her goods and services, at the same time as borrowing costs increase.
Employment is now only a touch away from prepandemic levels, down 524,000, or 0.3 percent, from February 2020. A recovery in private-sector job creation is accountable for the general gains. Government employment has lagged, with a shortfall of 664,000.
Job growth in educational services was solid, seasonally adjusted, suggesting that employment in that sector fell lower than usual at the beginning of summer.
A recent wave of layoffs within the tech and housing sectors have made headlines, yet employment in skilled and business services is 880,000 above its February 2020 level, and overall hiring last month showed no sign of slowing.
“High inflation and a shift of consumer spending from goods to services is causing job losses in some sectors of the economy, but most employees who’re losing jobs are finding latest ones quickly,” said Bill Adams, the chief economist for Comerica Bank, a big industrial bank based in Dallas.
With the massive baby boomer population continuing to age, demand for health care employees is growing and the sector added 57,000 jobs in June, leaving it 1.1 percent below its prepandemic levels.
There was also a big pickup in jobs at child care centers, excellent news for a sector that has faced a specific labor shortage. Though labor force participation within the economy overall was mostly flat compared with May.
Leisure and hospitality businesses, that are benefiting from an early summer surge in travel, dining and entertainment, added 67,000 jobs, including 41,000 in food services and drinking places — a fine addition to the sector, which remains to be 1.3 million jobs wanting its prepandemic employment level.