June Job Growth Shatters Expectations, Unemployment Drops


The U.S. economy gained nearly 5 million jobs in June, while the unemployment declined to 11.1 percent, according to Department of Labor data released Friday.

Total non-farm payroll employment rose by 4.8 million in June, according to the Bureau of Labor Statistics report, and the number of unemployed persons fell by 3.2 million to 17.8 million.

These numbers mark the second month of both unemployment gains since the country lost the record number of 20.5 million jobs due to the coronavirus pandemic closures.

May’s unemployment rate had declined by 1.4 percentage points from April’s 14.7 percent, which was the largest over-the-month increase and highest unemployment rate since at least 1948.

“These improvements in the labor market reflected the continued resumption of economic activity that had been curtailed in March and April due to the coronavirus (COVID-19) pandemic and efforts to contain it,” the report said.

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“In June, employment in leisure and hospitality rose sharply. Notable job gains also occurred in retail trade, education and health services, other services, manufacturing, and professional and business services.”

“Among the major worker groups,” the report said, “the unemployment rates declined in June for adult men (10.2 percent), adult women (11.2 percent), teenagers (23.2 percent), Whites (10.1 percent), Blacks (15.4 percent), and Hispanics (14.5 percent).”

Economists had predicted that the economy would gain 3 million jobs in June and that the unemployment rate would decline to 12.5 percent, according to Business Insider.

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Many saw the numbers announced Thursday morning as good news for the country and for President Donald Trump’s re-election campaign.

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“We are in a whole new world of trying to model what data is going to be, because there’s not an economist in the world that’s ever gone through a forced economic shutdown,” Tom Essaye, Sevens Report Research founder, told Yahoo Finance.

“And that’s why a lot of these numbers are completely blowing past what the expectation is.”

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