287,000 Jobs Added to the Economy in June

Posted: Jul 08  |  By: Parker + Lynch

The Latest Numbers From the BLS Employment Situation Report

An employment summary based on the U.S. Bureau of Labor Statistics’ (BLS) June 2016 monthly jobs report.

After a disappointing jobs numbers showing last month, private-sector employment picked up a bit in June — suggesting the weak May nonfarm-payroll report may have been an anomaly.

The Bureau of Labor Statistics’ jobs report showed that 287,000 private-sector jobs were added in June, above economists expectations for a gain of 150,000 jobs.

Economists predictions

Economists predicted 150,000+ job additions ahead of this morning’s jobs report and the report exceeded expectations. Over 287,000 jobs were added this month which is well above last month’s 11,000 (adjusted from 38,000).

While the pickup in private-sector employment in June suggests that last month’s very weak number might have been an outlier and that the economy is a little sturdier than some feared, there is still strong indications that the U.S. Federal Reserve (Fed) won’t raise interest rates again until the end of the year and into 2017.

The Fed expressed concerns about the labor market during its June 14-15 policy meeting. “Almost all participants judged that the surprisingly weak May employment report increased their uncertainty about the outlook for the labor market,” according to the meeting minutes. The Fed is said to be heavily considering today’s jobs report numbers when making their interest rate decision.

Let’s break down the national numbers from this month’s jobs report:

PL June Jobs Report

  • Wages:
    • $25.61 June
    • $25.59 May
      • + 2 cents month-over-month
      • +2.6% year-over-year
  • Unemployment:
    • 4.9% June
    • 4.7% May
      • +0.2% month-over-month
      • -0.4% year-over-year

In June, hourly wages rose $0.2 to $25.61 per hour, bringing the year-over-year wage percentage increase to 2.6%. The unemployment rate increased month-over-month and now sits at 4.9%. What does this mean for our industries? Our in-depth analysis is below:

In-Depth Look: Our Industries

Let’s take a look at how the Accounting and Finance industry is performing. Overall, industry subsectors saw job additions month-over-month. Here are some of the highlights:

Here’s how our industries’ employment is shaping up:

  • Financial activities:
    • Month-over-month change: +16,000
    •  Year-over-year change: +163,000
  • Finance and Insurance:
    • Month-over-month change: +9,000
    • Year-over-year change: +110,500
  • Accounting and bookkeeping services:
    • Month-over-month change: +300 jobs
    • Year-over-year change: +37,300
  • Legal Services
    • Month-over-month change: +100
    • 4,800 jobs added since June of last year
    • Previous Months:
      • May +3,800
      • April -1,500
      • March: +1,200

Right now the unemployment rate for financial services sits at 2.2% up slightly from last month and the legal services industry is at 2.7%, down slightly from last month. Both rates are well below the national average and while that’s great news for legal and accounting and finance job seekers, for employers it means hiring top talent is going to be challenging. To get ahead of your competitors and add exceptional professionals to your workforce, make sure you are offering a competitive salary.  Request a free copy of our 2016 Salary Guide – a comprehensive resource for salaries across the industry – to get the latest salary insights that will help you hire the industries top professionals.