ThinkWhy® Advises U.S. Businesses on Labor Market Conditions Following June Jobs Report
June Sees Another Historic Job Gain Focused on Low-Wage Industries, But Rise of COVID-19 Count Signals More Setbacks to Come
DALLAS–(BUSINESS WIRE)–ThinkWhy, a SaaS company helping businesses navigate the labor market, has released its U.S. monthly jobs report for June 2020. According to the Bureau of Labor Statistics (BLS), the U.S. economy gained 4.8 million jobs in June, surpassing the record of 2.7 million jobs added in May. The combined 7.5 million jobs added in May and June 2020 represent more than the 40-month total leading up to the impact of COVID-19.
As reported monthly through the BLS, the U.S. unemployment rate for June fell to 11.1 percent. June’s strong growth was boosted by U.S. businesses reopening to various levels based on state and local policies, however, the pace and sustainability of the recovery is being threatened by a rise in COVID-19 counts across the nation.
“Job growth hit another record and continued to benefit from states reopening in June. The numbers provide a level of optimism for the economic recovery, but rising COVID-19 counts are threatening the pace and sustainability of the rebound,” said Jay Denton, SVP, Business Intelligence and Chief Innovation Officer at ThinkWhy.
Labor Market Performance:
- Non-farm payrolls increased 4.8 million in June
- Unemployment sits at 11.1%
- Temporary layoff level is 10.56 million
- Job gains concentrated in low-wage industries such as Leisure and Hospitality (2.1 million) and Trade, Transportation + Utilities (903,000)
In addition, total non-farm payroll average hourly earnings increased by 5.0% year-over-year ending in June. On a year-over-year comparison, the reduction of many low wage jobs contributed to the strong wage growth. Combined with six consecutive weeks of generally decelerating total unemployment insurance claims, these are indications the U.S. is seeing signs of recovery.
The question now is whether it can be sustained. Some states are pausing the lift of restrictions, or even tightening them in some cases. If the trend continues, the rebound in job growth would likely stall and elongate the road back to the pre-pandemic employment level.
Why It Matters: Key Takeaways from the June Employment Report
June’s record job gain of 4.8 million strongly suggests that an economic recovery is underway, particularly for some of the nation’s hardest-hit industries.
As businesses navigate recovery and plan for growth, they can:
- Focus on industry and metro growth performance to identify sales, marketing and business development opportunities.
- Evaluate talent and location strategies, including for remote hiring, and know the pay differentials across markets.
- Measure timing and magnitude of job loss and recovery by industry and metro, as variances can dramatically impact investment and operational strategies.
- Leisure and Hospitality: Gains within this industry surged to 2.1 million jobs. The subsector of food services and drinking places accounted for most of the gain, with 1.5 million jobs added.
- Trade, Transportation and Utilities: The retail trade sector rose by 740,000 jobs, approximately double the 372,000 jobs recaptured during May. Clothing and clothing accessory stores gained the most within this category at 202,000 jobs.
- Education and Health Care Services: Gain within this industry was 568,000 in June. Offices of dentists (190,000) and physicians (80,000) saw the biggest lift.
- Professional and Business Services: Gain within this industry was 306,000 in June. Temporary-help services benefitted by adding 149,000 jobs.
- Manufacturing: Gain within this industry was 356,000 in June, still down 757,000 jobs compared to February.
- Government: Gain within this industry was 33,000.
- Construction: Gain within this industry was 158,000.
To read the full report, click here.
ThinkWhy continuously monitors and forecasts labor data at all levels, measuring impact to MSAs, industries and businesses across the country, to support organizations and provide answers during the recovery phases. LaborIQ® by ThinkWhy® is a proprietary U.S. labor market reporting platform that also provides salary answers for over 19,000 jobs, customizable by metro, industry, education, experience and skills. For additional information on LaborIQ, please visit ThinkWhy.com.
ThinkWhy is helping companies navigate a new era of work by creating modern, human-centered software that supports better career lives. LaborIQ by ThinkWhy is the first platform to bridge the gap between salary answers and metro performance, delivering a strategic advantage to businesses. Learn more at www.ThinkWhy.com or follow us on Twitter and Instagram at @ThinkWhy_, on Facebook at @ThinkWhyLLC and LinkedIn at @ThinkWhy-LLC.
KWT Global for ThinkWhy