62k Jobs Lost In June, 438k Lost In 2008 (Charts), Unemployment Stays 5.5%

The Bureau of Labor Statistics showed non-farm payroll report showed that the economy lost 62,000 jobs in June, which was the sixth straight and the longest job loss streak since 2002. June unemployment remained at 5.5%, after jumping .5% to it’s current 5.5% level in May — this is the highest level in four years. Also, applications for jobless assistance jumped to 404,000, suggesting more trouble is ahead. Chart 1 below shows the economy has lost 438,000 jobs since the losing streak began (note May and June are preliminary). Chart 2 below shows which industries jobs were lost or gained. Also below is full BLS Employment Report.

CHART 1: MONTHLY JOB GAIN/LOSS 1/07 TO 6/08

CHART 2: JUNE 2008 JOBS BY SECTOR

FULL BLS EMPLOYMENT REPORT FOR THOSE WHO HAVE TROUBLE SLEEPING
Nonfarm payroll employment continued to trend down in June (-62,000), while the unemployment rate held at 5.5 percent, the Bureau of Labor Statistics of the U.S. Department of Labor reported today. Employment continued to fall in construction, manufacturing, and employment services, while health care and mining added jobs. Average hourly earnings rose by 6 cents, or 0.3 percent, over the month.

Unemployment (Household Survey Data)

The number of unemployed persons was essentially unchanged in June, at 8.5 million, and the unemployment rate held at 5.5 percent. A year earlier, the number of unemployed persons was 7.0 million, and the jobless rate was 4.6 percent.

The unemployment rate for Hispanics (7.7 percent) increased over the month, while the rate for adult men (5.1 percent) continued to trend up. Jobless rates for adult women (4.7 percent), teenagers (18.1 percent), whites (4.9 per- cent), and blacks (9.2 percent) showed little or no change in June. The unemployment rate for Asians was 4.5 percent, not seasonally adjusted.

Among the unemployed, the number of persons who had lost their last job was essentially unchanged at 4.4 million in June, but has risen by 952,000 over the past 12 months. The numbers of unemployed re-entrants and new entrants to the labor force were little changed in June; both groups had increased sharply in May.

Following a large increase in May, the number of newly unemployed–those jobless fewer than 5 weeks–decreased by 532,000 in June. The number of persons unemployed 5 to 14 weeks rose by 530,000 over the month. The number of long-term unemployed (those persons jobless for 27 weeks or more) was essentially unchanged in June at 1.6 million; this group accounted for 18.4 percent of the unemployed.

Total Employment and the Labor Force (Household Survey Data)

The civilian labor force (154.4 million) and the labor force participation rate (66.1 percent) were little changed in June; in the prior month the civilian labor force had increased sharply. Both total employment (145.9 million) and the employment-population ratio (62.4 percent) were essentially unchanged in June. The employment-population ratio was 0.6 percentage point lower than a year
earlier.

The number of persons who worked part time for economic reasons, at 5.4 million in June, was about unchanged over the month, but was up by 1.1 million over the past 12 months. These individuals indicated that they were working part time because their hours had been cut back or they were unable to find full-time jobs.

Persons Not in the Labor Force (Household Survey Data)

In June, about 1.6 million persons (not seasonally adjusted) were marginally attached to the labor force, little different from a year earlier. These individuals wanted and were available for work and had looked for a job sometime in the prior 12 months. They were not counted as unemployed because they had not searched for work in the 4 weeks preceding the survey. Among the marginally attached, there were 420,000 discouraged workers in June, little changed from a year earlier. Discouraged workers were not currently looking for work specifically because they believed no jobs were available for them. The other 1.1 million persons marginally attached to the labor force in June had not searched for work in the 4 weeks preceding the survey for reasons such as school attendance or family responsibilities.

Industry Payroll Employment (Establishment Survey Data)

Total nonfarm payroll employment continued to trend down in June (-62,000). Since peaking in December 2007, payroll employment has fallen by 438,000. In June, job losses continued in construction, manufacturing, and employment services. Health care and mining added jobs over the month.

Employment in construction fell by 43,000 in June, as job losses continued across the industry. Since its peak in September 2006, construction employment has fallen by 528,000.

In June, manufacturing employment fell by 33,000. Job losses were widespread throughout the industry, with notable declines in fabricated metal products (-9,000), printing and related support activities (-6,000), and wood products (-6,000). Employment in motor vehicles and parts edged up by 6,000 over the month, largely reflecting the return of workers from strikes and related shut-
downs. Over the past 12 months, manufacturing has lost 353,000 jobs.

Within professional and business services, employment services lost 59,000 jobs in June; about half of the decrease (-30,000) occurred in temporary help services. So far this year, monthly job losses in temporary help services have averaged 26,000 compared with average declines of 7,000 per month in 2007.

Retail trade employment changed little in June. A job gain in general merchandise stores (9,000) was offset by small declines elsewhere in the sector. Since its most recent peak in March 2007, retail trade has shed 194,000 jobs.

Employment in mining rose by 8,000 in June. Support activities for mining and oil and gas extraction accounted for most of the increase. Mining employment has expanded by 208,000, or 42 percent, since its most recent low in April 2003.

Health care employment continued to grow in June (15,000), although the increase was half the size of the average monthly gain during the prior 12 months. In June, employment rose in ambulatory health care services (13,000). Since June 2007, health care has added 348,000 jobs.

In June, food services employment continued to trend upward (16,000), although job gains in this industry have slowed recently. The industry added an average of 13,000 jobs per month from November 2007 through June 2008; this compares with an average increase of 27,000 jobs per month for the first 10 months of 2007.

Government employment continued to trend up in June and has grown by 257,000 over the past 12 months. Local government has accounted for about two-thirds of the growth since June 2007.

Weekly Hours (Establishment Survey Data)

In June, the average workweek for production and nonsupervisory workers on private nonfarm payrolls remained at 33.7 hours, seasonally adjusted. The manufacturing workweek decreased by 0.1 hour to 40.8 hours, and factory overtime was unchanged at 3.9 hours.

The index of aggregate weekly hours of production and nonsupervisory workers on nonfarm payrolls fell by 0.1 percent in June to 107.0 (2002=100). The manufacturing index declined by 0.5 percent to 91.4 percent.

Hourly and Weekly Earnings (Establishment Survey Data)

In June, average hourly earnings of production and nonsupervisory workers on private nonfarm payrolls rose by 6 cents, or 0.3 percent, to $18.01, seasonally adjusted. This followed gains of 6 cents in May and 2 cents in April. Average weekly earnings rose by 0.3 percent in June to $606.94. Over the past 12 months, average hourly earnings increased by 3.4 percent and average weekly earnings rose by 2.8 percent.