The US economy added 850,000 jobs in June
By Anneken Tappe, CNN Business
The US economy added 850,000 jobs in June, when adjusted for seasonal changes. It was far more than economists had expected and a signal that American job growth is accelerating.
The hospitality and leisure sector grew the strongest, having the most ground to cover after the pandemic devastated the travel and service industries. That sector added 343,000 jobs. More than half of them were at restaurants and bars.
Nevertheless, America’s once-strong labor market is still far from being back to normal, down 6.8 million jobs compared with February 2020. According to the report, 6.2 million people reported that they didn’t work at all or worked less because their employer had been affected by the pandemic.
The unemployment rate stood at 5.9%, up from 5.8% in May, the Bureau of Labor Statistics reported Friday.
Even though the labor force participation rate was unchanged at 61.6%, the number of people quitting their jobs voluntarily to look for another position jumped by 164,000 in June.
It’s a tale of a job market in imbalance: Employers are struggling to attract and retain staff as the reopening spurred a hiring surge, because some workers are still not ready to return to work. Many fear infection, or worry about adequate care for their children or elderly relatives. The expanded jobless benefits that were created to soften the pandemic blow also allow people to take longer in choosing the right job for them, rather than to rush back into the labor market.
All of this is creating an unprecedented mismatch between worker supply and demand.
This is a developing story. It will be updated
The-CNN-Wire
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