The U.S. Bureau of Labor Statistics Friday reported the United States economy added 209,000 jobs in June, continuing a stretch of 30 straight months of job growth—but down from previous months. The number was less than the expected 230,000 jobs gained.
The unemployment rate dropped from 3.7% to 3.6%, as well.
The industries that saw the largest job growth in June, according to the report, are:
- Government services (60,000 jobs)
- Healthcare (41,000)
- Social assistance (24,000)
- Construction (23,000)
- Hospitality (21,000)
“It is what the Federal Reserve was hoping to see for a soft landing and not force the country into a recession,” Lawrence Dearth, Insight Global’s President of Recruiting, said.
In contrast, Thursday’s report from the ADP National Employment Report showed the private sector gained nearly 500,000 jobs in June. Around 60% of those jobs came from businesses under 50 employees, and the remaining growth came from mid-sized businesses (between 50 and 499 employees). Around half of the private sector jobs came from the hospitality industry, the report said.
Dearth says the busy travel season (there was record travel on the Fourth of July weekend) and people continuing to spend their disposable income on things like vacations and dining affect these numbers.
“This impacts your small- and medium-sized businesses who have to hire more seasonal help, who are probably more affected by an overall cyclical economy,” Dearth pointed out. Though larger businesses may have slowed or paused hiring for a period, that solution “doesn’t solve the need for the restaurant owner in Panama City, Florida, who just saw a surge of travelers throughout the summer that’s peaking on the Fourth of July.”
Some other labor statistics revealed over the last couple of days include:
- Initial jobless claims inched up this week by 12,000 to 248,000
- Continuing jobless claims continued falling, this week by 13,000
- The United States GDP grew 2.0% in Q1 of this year, an upward revision from the initial 1.3% growth in Q1
- Prime-age labor force participation (among those between 25 and 54 years old) reached 83.5%, the highest number in over 20 years.
- Year-over-year wage growth for the hospitality industry sat above 5%, but the overall wage growth for workers in June was 4.4%.
U.S. Hiring Is Still Evolving
Like the broader JOLTS report, Insight Global has seen job openings hover at the same level over the last three months. Dearth says that there is still strong demand for jobs in consumer goods and leisure and hospitality, though large cap businesses are continuing the rightsizing that began at the end of 2022. These businesses are hiring fewer staffers domestically right now.
As the workforce continues to evolve, Dearth says he sees transformations happening in two areas:
- Remote work continues to decrease, and the majority of new job positions at companies of all sizes are hybrid or in-office jobs. Insight Global saw that nearly 90% of all new job openings in the first week of June were for non-remote roles.
- As domestic remote work decreases, businesses are trending back toward globalization—using talent overseas for things like IT development, support, testing, and general Big Tech capabilities. Dearth says larger companies are moving back toward this practice more than they were during the COVID-19 pandemic.
Overall, Dearth, a recruiting and staffing professional with more than 13 years in the industry, saw positive takeaways in the recent numbers. “This is good news for people who don’t want to see interest rates continue to go up and don’t want to see the continued risk of a recession.”
See other views and insights on recent labor news from Insight Global thought leaders.