June 8th, 2022
What Employers Ought To Know About the June 2022 Job Report
Every month, at around 8.30 a.m. on the first Friday, the United States Bureau of Labor Statistics(BLS) issues a job report known as the Employment Situation Summary. The data includes the job outlook for different sectors, wage growth, and unemployment rates. This job report uses information from the Household and Establishment surveys. Based on the results, your company can gauge the job market’s health and make appropriate staffing decisions.
What Is an Establishment Survey?
You might remember it as the Current Employment Statistics Survey. Currently called the establishment survey, it gets its data from about 145,000 nonfarm companies, approximately a 1/3 of payroll workers, and 697,000 government agencies’ work sites. The exclusion of farm businesses in this survey is due to the sector’s seasonal nature. Also, the data on payroll workers does not include self-employed individuals.
Establishment Survey Data for the June Job Report
The month of May saw an additional 390,000 jobs in nonfarm payrolls with remarkable job gains in leisure and hospitality. However, compared to the pre-pandemic levels, this industry saw a dip in employment by 7.9%.
The professional and business service industry also saw a significant increase in jobs by 75,000. These gains were specifically evident in accounting, computer systems design, and R&D. The figures were 821,000 higher compared to February 2020, pre-pandemic.
The warehouse and transport industries also saw a rise in employment by 47,000. As for construction, the sector added 36,000 jobs in the engineering field and specialty trade contractors department.
There was also notable job growth in state government and private education by 36,000 and 33,000. The case was different for local government education because, despite the month’s job increase, these figures dipped by 3.8% compared to February 2020.
The healthcare industry added 28,000 jobs, manufacturing 18,000, wholesale trade 14,000, and mining saw a rise in employment by 6000. In comparison, retail business decreased by 61,000. However, this was 159,000 higher than the pre-pandemic level.
In May, the average hourly earnings for private nonfarm employees increased by 10 cents to $31.95. It’s worth noting that this amount was a 5.2 percent increase over the financial year yet lower than the 5.5 percent seen in April. The average workweek was 34.6 hours for private nonfarm workers, similar to the previous month’s workweek hours.
The BLS June job report also corrected the March and April employment situation, which showed that employers added 428,000 jobs in April. The revised figures show that job growth in March was 398,000 and not 428,000. Also, for April, the increase in employment was by 436,000 and not 428,000.
What Is the Household Survey?
The Household Survey utilizes data from 60,000 households. The U.S. Census Bureau collects information on the participants’ employment status to produce the U-3 unemployment rate. Keep in mind that this survey excludes people below 16 years.
Also, it is more extensive compared to the establishment survey as it includes several categories. However, it is less precise because it uses a smaller sampling size.
Household Survey Data for the June Job Report
The May unemployment rate was 3.6 percent, and the number of unemployed was 6 million, similar to the numbers reported in April and May. The Asian worker group saw a reduction in unemployment by 2.4 percent. The case was different for Blacks, Whites, and Hispanics, who experienced almost no change.
The figures for permanent job losers was 1.4 million, the same as the previous month. This figure was the same for long-term job seekers(at least 27 weeks).
On the bright side, part-time workers rose by 295,000. Keep in mind that the primary reasons for this increase included reduced work hours and the failure to find permanent jobs. The labor force participation rate and the employment-population ratio had 1.1 percentage points less than their pre-pandemic level.
This job report also included supplemental data. For instance, the Labor Department reported that 7.4 percent of employees worked from home, a 0.3 percent decrease from the previous month. May also saw a loss of 1.8 million jobs due to pandemic-related business closures. 19.9 percent of these people received a form of salary.
Notable Aspects of the June Job Report
Generally, each sector saw a recovery from the COVID-related recession partly due to the chaotic supply chains and production delays. As a result, experts believe that the federal reserve is so far succeeding in averting high inflation.
This recovery has highlighted the employment situation for disadvantaged worker groups. For instance, among those employed, the percentage of black people rose to 63 percent. However, if the system raises interest rates, this might lead to a hiring decline. As a result, black people and other historically disadvantaged people might not land jobs as quickly.
Get a Better Sense of the Job Outlook With the Help of PrideStaff
As your company considers putting up more job openings, it helps to seek advisory services from an experienced employment agency in Lauderdale. With our help, your company will better understand the job outlook in your field, ensuring informed staffing decisions. Our staffing agency can also provide administrative, call center, and clerical staffing solutions. Feel free to reach out to us to learn how we can help your company find the best employees for your positions.