Job Market Sees Big Boost in June 2021 Report07/08/2021
After a less than stellar May report, job growth appears to be back on track. A total of 850,000 jobs were added in June — the biggest monthly gain since August 2020 and a far better number than economists had expected.
“The improvement today likely reflects a slight easing of the labor supply constraints that have been holding back the job market in recent months, as well as continued momentum from the economic reopening,” said Seema Shah, chief strategist at Principal Global Investors.
While the hospitality industry — the hardest hit by the pandemic — saw the biggest boost, other industries also saw positive momentum: Professional and business services increased by 72,000 while manufacturing — still plagued by supply chain issues — was still able to add 15,000 jobs.
The labor force participation rate remained at 61.6%, signaling workers are still cautious on their return to the workforce. Many factors account for the stagnant rate, including lack of child or elder care for working parents and caregivers, and expanded jobless benefits that are giving workers more time to contemplate their next move. This means the job market remains candidate-driven, and organizations will need to consider ways they can appeal to those hesitant to return to work.
This latest report shows the economy and job market are headed in the right direction and should continue that forward movement in the coming months. Economists expect a strong fall season, as jobless benefits are set to end in September and in-person education will resume, opening the door for many workers to return.