Written By ESR News Blog Editor Thomas Ahearn
The United States economy added 4.8 million jobs while the unemployment rate declined to 11.1 percent in June 2020, improvements reflecting the continued resumption of economic activity curtailed in March and April due to the Coronavirus (COVID-19) pandemic, according to the jobs report from the U.S. Bureau of Labor Statistics (BLS).
The jobs report revealed the number of unemployed people fell by 3.2 million to reach 17.8 million in June 2020, while employment rose in leisure and hospitality, retail trade, education and health services, other services, manufacturing, and professional and business services. Here is a breakdown of job gains and losses by sector:
- Leisure and hospitality employment increased by 2.1 million jobs in June. Despite these gains, employment in food services and drinking places is down by 3.1 million jobs since February.
- Retail trade employment rose by 740,000 jobs in June. On net, employment in the industry is 1.3 million jobs lower than in February.
- Education and health services employment increased by 568,000 jobs in June but is 1.8 million jobs below February’s level.
- Other services industry employment added 357,000 jobs in June. Since February, employment in the other services industry is down by 752,000 jobs.
- Manufacturing employment rose by 356,000 jobs in June but is down by 757,000 jobs since February.
- Professional and business services employment added 306,000 jobs in June but employment is 1.8 million jobs below its February level.
- Construction employment increased by 158,000 jobs in June, following a gain of 453,000 in May. These gains accounted for more than half of the 1.1 million combined jobs lost in March and April.
- Transportation and warehousing employment added 99,000 jobs in June, following a combined loss of 588,000 jobs in April and May.
- Wholesale trade employment was up by 68,000 jobs in June but is down by 317,000 jobs since February.
- Financial activities employment added 32,000 jobs in June. Since February, employment in financial activities is down by 237,000 jobs.
- Government employment continued added 33,000 jobs in June. Government employment is 1.5 million jobs below its February level.
- Mining employment continued to lose jobs with 10,000 jobs lost in June. Mining employment is down by 123,000 jobs since a recent peak in January 2019, although nearly three-fourths of the decline has occurred since February 2020.
The jobs report showed the change in employment for April 2020 was revised from 20.7 million jobs lost to 20.8 million jobs lost while May 2020 was revised from 2.5 million jobs added to 2.7 million jobs added. With these revisions, gains in April and May combined were 90,000 jobs higher than previously reported.
After the May jobs report misclassified workers and lowered the unemployment rate by 3 percentage points, the misclassification declined in June. “If people who were absent due to temporary, pandemic-related closures were recorded as absent due to ‘other reasons,’ they could have been misclassified,” the June jobs report noted.
“If the workers who were recorded as employed but absent from work due to ‘other reasons’ (over and above the number absent for other reasons in a typical June) had been classified as unemployed on temporary layoff, the overall unemployment rate would have been about 1 percentage point higher than reported,” the report stated.
The jobs report is usually released on the first Friday of every month at www.bls.gov/news.release/empsit.nr0.htm. The jobs report for July 2020 will be released on Friday, August 7, 2020. More information about the June 2020 jobs report is available at www.bls.gov/cps/employment-situation-covid19-faq-june-2020.pdf.
Coronavirus (COVID-19) is a respiratory illness that spreads from person to person. As of July 2, 2020, there are more than 10.7 million global cases and more than 516,000 global deaths, while the U.S. leads the world with more than 2.6 million cases and more than 128,000 deaths, according to research from Johns Hopkins University.
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