Hickey Jobs Report Update June 2023
Hickey Jobs Report Update – U.S. adds 209,000 jobs in June 2023
In the face of a continued challenging economy, the United States still added more jobs and sustained the nation’s hiring surge, as revealed by the latest Jobs Report. Per the national survey, 209,000 new workers were added to the workforce, just barely missing expectations. Additionally, the national unemployment rate saw a marginal reduction from 3.7 percent to 3.6 percent. Notably, this rate has exhibited a remarkable stability since early 2022, showcasing resilience amidst these challenging economic conditions.
According to the latest U.S. Bureau of Labor Statistics Jobs Report, the biggest job gains for June 2023 were seen in Government, Social Assistance, Health Care, Professional Business Services and Construction sectors. Average hourly earnings for all employees on private nonfarm payrolls increased by 12 cents to $33.58, resulting in a 4.4 percent increase over the past 12 months.
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:
The U.S. economy sustained its trend of employment growth, adding 209,000 jobs in June and 278,000 per month over the last six months of 2023. Although this reflects positive momentum, the figure is slightly lower than the average monthly gain of 399,000 jobs observed in 2022. These numbers were also remarkably lower than the ADP payrolls estimate of +497,000 new jobs over the previous month.
June saw a significant rise in job positions within the Government, with an impressive increase of 60,000 new jobs. What's even more remarkable is the consistent trend of the Government sector, as it has been steadily adding an average of 63,000 jobs per month throughout 2023. This figure is more than twice the monthly average of 23,000 jobs observed in 2022.
For the fourth consecutive month, the labor force participation rate stands steady at 62.6 percent, indicating a consistent trend. Similarly, the employment population ratio remained unchanged at 60.3 percent over the course of the month.
In June, there was minimal change in both the unemployment rate, standing at 3.6 percent, and the number of unemployed individuals, totaling 6 million. It is worth noting that the unemployment rate has exhibited a range of 3.4 percent to 3.7 percent since March 2022, indicating a relatively stable pattern over the past months, and maintaining in close proximity to pre-pandemic levels.
In June, workers saw an increase in their average hourly earnings, with a rise of 12 cents or 0.4 percent, bringing the figure to $33.58. Over the past 12 months, these earnings have experienced an increase of 4.4 percent. As the Federal Reserve closely evaluates interest rates, this ongoing trend in earnings becomes particularly interesting to monitor, considering the recent rate hike and its potential implications.
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.
Hickey US Jobs Report - June 2023
Report Summary
Amidst increased uncertainty spanning various sectors, the latest U.S. Jobs Report reveals that the American economy maintained its hiring surge, with an additional 209,000 jobs added in the month of June. Over the initial six months of 2023, nonfarm employment has exhibited an average monthly growth of 278,000 positions, which is lower compared to the average of 399,000 jobs per month recorded in 2022.
During June significant employment gains were observed in the Government, Social Assistance, Construction, and Health Care sectors. However, the Transportation and Warehousing industry as well as the Retail Trade sector experienced employment declines.
The change in total nonfarm payroll employment for April was adjusted downward by 77,000 jobs, from 294,000 to 217,000. Additionally, the change for May was also revised downward by 33,000 jobs, from 339,000 to 306,000. These revisions indicate that the combined employment for April and May is now 110,000 jobs lower than the previous report.
In June, there was minimal change in both the unemployment rate, which stood at 3.6 percent, and the number of unemployed individuals, totaling 6.0 million. The national unemployment rate also marginally decreased by 0.1 percent from the previous month to 3.6 percent. It is noteworthy that the unemployment rate has remained relatively steady, fluctuating between 3.4 percent and 3.7 percent since March 2022, which is in close proximity to pre-pandemic levels.
The labor force participation rate remains the same for the fourth consecutive month at 62.6 percent. The employment population ratio was unchanged over the month at 60.3 percent.
The average hourly earnings for all employees on private nonfarm payrolls increased by 12 cents, or 0.4 percent, to reach $33.58 in June. Looking back over the past 12 months, these earnings have increased by 4.4 percent, which is on trend with 2023 so far.
Key Industries
Government
In the month of June, the Government witnessed a notable increase of 60,000 job positions. The positive employment trend persisted in both State Government with the addition of 27,000 new jobs, as well as Local Government with 32,000. Remarkably, the Government has been consistently adding an average of 63,000 jobs per month in 2023, which is more than twice the monthly average of 23,000 jobs in 2022. However, it is worth mentioning that Government employment remains 161,000 positions, or 0.7 percent, lower than its pre-pandemic level recorded in February 2020.
Health Care
In June, the Health Care sector experienced significant growth, with the addition of 41,000 jobs. This notable increase in employment was observed in various areas, including Hospitals, with the addition of 15,000 new jobs, Nursing and Residential Care Facilities added 12,000 new workers, and Home Health Care Services adding 9,000 employees. However, there was a decrease of 7,000 jobs in the Offices of Dentists. Throughout this year, the Health Care industry has maintained an average monthly gain of 42,000 jobs, similar to the average of 46,000 jobs per month in 2022.
Social Assistance
In June, the Social Assistance sector experienced an increase of 24,000 jobs, primarily driven by a significant addition of 18,000 new positions in Individual and Family Services. The sector has consistently shown a monthly average job growth of 22,000 positions in 2023, aligning with the average of 19,000 jobs per month in 2022.
Construction
During the month of June, the Construction sector demonstrated a consistent upward trend in employment, as it welcomed the addition of 23,000 new jobs. Throughout the year, this industry has displayed an average monthly increase of 15,000 positions, which contrasts with the average of 22,000 jobs per month observed in 2022. It is worth noting that in June, Residential Specialty Trade Contractors specifically exhibited a sustained positive employment trend, contributing to the sector's growth by generating 10,000 new job opportunities.
Retail and Trade
Employment in the Retail Trade sector experienced minimal fluctuations in June, with a loss of 11,000 jobs. Within the sector, employment declined by 10,000 in Building Material and Garden Equipment and Supplies Dealers, as well as by 5,000 in Furniture, Home Furnishings, Electronics, and Appliance Retailers. On a positive note, Motor Vehicle and Parts Dealers contributed by adding 6,000 jobs. Overall, the Retail Trade industry has shown little net change in employment throughout the year.
Leisure and Hospitality
Employment in the Leisure and Hospitality sector experienced little change as it added 21,000 new jobs. This industry has now witnessed three consecutive months of minimal employment fluctuations. However, it is important to note that employment in the sector remains 369,000 jobs below its pre-pandemic level in February 2020, representing a decline of 2.2 percent.
Other Notable Industries
In other notable industries, employment in the Professional and Business Services sector remained relatively stable, with the addition of 21,000 new jobs. The industry has been experiencing an average monthly job growth of 40,000 positions in 2023, a decrease from the average of 62,000 jobs per month in 2022. Notably, within the sector, employment in Professional, Scientific, and Technical Services continued to exhibit a positive trend, with the addition of 23,000 jobs over the month.
Employment in the Transportation and Warehousing sector exhibited little variation as it witnessed a loss of 7,000 jobs. Recent months have shown no clear trend in this industry. Couriers and Messengers experienced a decline of 7,000 jobs, while Warehousing and Storage also saw a decrease of 7,000 jobs. On a positive note, Air Transportation contributed to employment by adding 3,000 jobs.
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: