HICKEY Jobs Report Update June 2022
Hickey Jobs Report Update – U.S. adds 372,000 jobs in June 2022
With incredible inflationary pressures across the economy, the U.S. still increased the national workforce by 372,000 jobs in June, according to the latest U.S. Bureau of Labor Statistics Jobs Report. Once again exceeding the expectations of economists, these hiring trends show a strong labor market. The overall jobless rate remains at 3.6 percent, which is slightly above the 52-year low levels immediately preceding the pandemic.
Industries leading the hiring surge in June included Healthcare, Leisure & Hospitality, Manufacturing, and Professional & Business Services, along with Transportation & Warehousing. Hourly wages rose by another 10 cents, or 0.3 percent in June to $32.08. Over the previous 12 months, the hourly wage has increased by 5.1 percent, which is a slight decrease year-on-year.
We’re tracking these latest updates, along with labor force participation rates, wage shifts, and inflationary concerns – here are the five things you need to know from the latest U.S. Jobs Report:
As inflationary pressures were felt across the economy, American companies still continued their hiring surge, exceeding economist expectations. With 372,000 new jobs in June, the U.S. economy has added more than 2.8 million new workers since the beginning of 2022.
The dynamic Transportation & Warehousing sector continued their torrid pace in June by adding another 36,000 jobs. Overall, the industry has 759,000 more workers than pre-pandemic levels. These hiring trends have created major strains on employment + talent retention across the industry, which was recently in the spotlight following a leaked Amazon memo.
Hourly wages increased once again in June with a 10 cent increase, or 0.3 percent. While increasing this past month, there is a slight slowing of overall wage inflation, which is now at 5.1 percent over the past twelve months. Tracking to a key inflationary measurement, the consumer price index is now at 8.6 percent, thus hourly compensation is still trailing.
After a long uphill battle, the Manufacturing sectors have finally reached pre-pandemic levels after continued hiring growth in June. With increased interest in reshoring production to the U.S., the hiring bump is expected to continue across American manufacturing sectors.
The jobless rate remained at the same level of 3.6 percent, which is just slightly above pre-pandemic levels of 3.5 percent. However, the total Labor Participation Rate did slightly decrease in June, another core metric tracking economic health.
For more information and insights on the latest U.S. Jobs Report, check the latest update from our Hickey Location Analytics and Incentives Team: Bureau of Labor Statistics Employment Situation Summary website.
Report Summary
According to the latest U.S. Jobs Report, the July 2022 Employment Situation Summary, U.S. Bureau of Labor Statistics Jobs Report, American businesses increased the nation’s payrolls once again while the country is amidst major inflationary pressures. With 372,000 new jobs in June, the U.S. economy added roughly 2.8 million jobs since the beginning of 2022.
With that calculation for year-to-date hires, the federal labor agency did lower estimated job counts for April and May by a combined decrease of 74,000 than previously reported.
Strongest gains were in Healthcare, Leisure & Hospitality, Manufacturing, and Professional & Business Services, along with Transportation & Warehousing, among others.
The overall national unemployment rate stayed at 3.6 percent. The labor force participation slightly decreased by 0.1 percent from the previous month to 62.2 percent. America’s jobless rate remains just above pre-pandemic levels of 3.5 percent.
According to the release, U.S. hourly wages increased by another 10 cents in June, placing the national average at $32.08. Total wage inflation over the previous 12 months narrowly decreased to 5.1 percent, a decline year-over-year by 0.1 percent. According to another Bureau of Labor Statistics survey, the consumer price index continued to increase in May, which saw a jump of 1.0 percent. Overall, the nation has had an 8.6 percent increase over the previous year, when seasonally adjusted.
Key Industries
Leisure and Hospitality
The Leisure & Hospitality sectors maintained a torrid hiring streak by adding 84,000 jobs in May. Altogether, the largest gains came from Food Services & Drinking places at 46,000 new jobs, with Accommodations adding 21,000 workers. Overall, industry employment is still down by 1.3 million, or 7.9 percent.
Professional and Business Services
Building on last month’s growth, the dynamic Professional & Business Services sectors added 75,000 jobs in May and are now 821,000 above pre-pandemic levels. Biggest gains came from Accounting and Bookkeeping Services with 16,000 new hires, and Computer Systems Design and Related Services adding 13,000 jobs nationwide.
Manufacturing
Manufacturing added another 18,000 jobs in May. Job growth was primarily seen in Fabricated Metal Products with 16,000 new additions to their payrolls, and 4,000 jobs added to the Wood Products sector. In all, Manufacturing employment has nearly returned to pre-pandemic levels by only being 0.1 percent, or 17,000 jobs, from February 2020.
Retail Trade
Retail Trade did see a loss in employment as we enter the summer declining by 61,000 jobs in May. Nevertheless, the industry is still above pre-pandemic levels by 159,000 jobs.
Transportation and Warehousing
Keeping up their incredible job creation momentum, Transportation & Warehousing increased payrolls by 47,000 jobs in May. Warehousing and Storage added 18,000 more jobs, Truck Transportation brought on 13,000 new employees, and Air Transportation hired 6,000 more workers. The latter two sectors are strong signs for the nation’s challenged supply chain. Overall, the industry has 709,000 more workers today than levels seen in February 2020.
Other Notable Industries
In other notable industries, Construction added 36,000 jobs, Healthcare employment rose by 28,000, and the Education sector brought on 69,000 jobs during the previous month.
For more information on the latest Jobs Report, including additional details on the data concepts and statistical methodologies utilized, visit the Bureau of Labor Statistics Employment Situation Summary website.
If you are interested in learning more about the jobs reports, along with how we support our clients with dynamic labor analytics, we would be excited to connect one of our location strategy experts: