June Payrolls Expanded 209,000, Jobless Rate at 3.6%

Brian Turner
07 Jul, 2023
New York City

Nonfarm payrolls for June increased 209,000 and fell sharply from the downwardly revised 306,000 in May, the U.S. Bureau of Labor Statistics reported Friday. 

Jobless rate remained unchanged at 3.6% in the month. 

Labor market conditions are still tight and wage growth is moderating, but still inconsistent with the Federal Reserve's goal of 2% inflation.  

Both the unemployment rate at 3.6% and number of unemployed at 6.0 million, were little changed in the month. The unemployment rate had ranged between 3.4% and 3.7% since March 2022. 

Total nonfarm payroll employment increased by 209,000 in June, as employment in government, health care, social assistance, and construction continued to expand.

Nonfarm employment has grown by an average of 278,000 per month over the first six months of 2023, lower than the monthly average of 399,000 in 2022.

Employment in government increased by 60,000, in healthcare by 41,000, social assistance by 24,000, construction by 23,000, professional business services and leisure and hospitality each by 21,000. 

However, employment in retail trade declined by 11,000 and transportation and warehousing by 7,000.   

In June, average hourly earnings for all employees on private nonfarm payrolls rose by 12 cents, or 0.4%, to $33.58. 

Over the past 12 months, average hourly earnings have increased by 4.4%, a measure closely watched by economists for the sign of wage inflation. 

The average work week for all private nonfarm payrolls edged up 0.1 hour to 34.4 hours in June.   

On Thursday, The JOLT report showed employee quit rate declined to the pre-pandemic level in May, suggesting the supply and demand are in better balance than before. 

The official report followed the ADP report released on Thursday that showed private sector employment surged in June by a whopping 497,000 where half the gains were driven by increases in the leisure & hospitality sector. 

Financial markets are on high alert for indications that the Federal Reserve may increase at a faster pace after pausing in June.