Skip to main content

The private sector added a paltry 57,000 jobs in June, according to seasonally adjusted figures announced this morning by the Bureau of Labor Statistics. State and local government layoffs of 39,000 cut the net gain to 18,000.

The overall increase was far below expectations and more evidence that economic growth is sputtering. Those expectations had been driven upward by an encouraging private jobs report released by ADP on Thursday. Making today's news even worse, job gains for the previous two months were revised downward by 44,000. A likely consequence of today's announcement will be downward revisions for estimates of growth in gross domestic product for the third quarter and a retreat from the view of some economists, including Federal Reserve Chairman Ben Bernanke, that the economic slowdown is transitory.

The official unemployment rate—U3—(which is calculated from a different survey than the one determining the number of jobs gained or lost) rose to 9.2 percent. An alternative measure—U6—that includes the underemployed and a portion of discouraged workers soared to 16.2 percent.

The number of officially unemployed rose  to 14.1 million. The labor force participation rate held steady at an historically low 64.1 percent, where it has remained for five months. The employment-population ratio fell to 58.2 percent. The number of Americans out of work for six months or more rose to 6.3 million.

Revisions changed job gains previously reported for April from 232,000 to 217,000, and for May from 54,000 to 25,000.

Two years ago in June, 502,000 jobs were shed; last year the loss was 192,000, much of it caused by lay-offs in temporary Census jobs. At the current level of net job creation—for the past six months it has averaged 133,500 a monthly—it will take until October 2015 to reach the pre-recession level of employment as measured in December 2007.

Click here for larger version of this chart created by Calculated Risk
Among other statistics in today's report:

• The average workweek for production and non-supervisory workers fell to 34.3 hours.
• The average hourly earnings for all employees on private nonfarm payrolls decreased by 1 cent, to $22.99.

EMAIL TO A FRIEND X
Your Email has been sent.
You must add at least one tag to this diary before publishing it.

Add keywords that describe this diary. Separate multiple keywords with commas.
Tagging tips - Search For Tags - Browse For Tags

?

More Tagging tips:

A tag is a way to search for this diary. If someone is searching for "Barack Obama," is this a diary they'd be trying to find?

Use a person's full name, without any title. Senator Obama may become President Obama, and Michelle Obama might run for office.

If your diary covers an election or elected official, use election tags, which are generally the state abbreviation followed by the office. CA-01 is the first district House seat. CA-Sen covers both senate races. NY-GOV covers the New York governor's race.

Tags do not compound: that is, "education reform" is a completely different tag from "education". A tag like "reform" alone is probably not meaningful.

Consider if one or more of these tags fits your diary: Civil Rights, Community, Congress, Culture, Economy, Education, Elections, Energy, Environment, Health Care, International, Labor, Law, Media, Meta, National Security, Science, Transportation, or White House. If your diary is specific to a state, consider adding the state (California, Texas, etc). Keep in mind, though, that there are many wonderful and important diaries that don't fit in any of these tags. Don't worry if yours doesn't.

You can add a private note to this diary when hotlisting it:
Are you sure you want to remove this diary from your hotlist?
Are you sure you want to remove your recommendation? You can only recommend a diary once, so you will not be able to re-recommend it afterwards.
Rescue this diary, and add a note:
Are you sure you want to remove this diary from Rescue?
Choose where to republish this diary. The diary will be added to the queue for that group. Publish it from the queue to make it appear.

You must be a member of a group to use this feature.

Add a quick update to your diary without changing the diary itself:
Are you sure you want to remove this diary?
(The diary will be removed from the site and returned to your drafts for further editing.)
(The diary will be removed.)
Are you sure you want to save these changes to the published diary?

Comment Preferences

Subscribe or Donate to support Daily Kos.

Click here for the mobile view of the site