The number of temp jobs rose by 148,900 in June from May for a total of more than 2.2 million jobs, according to seasonally adjusted data released today by the US Bureau of Labor Statistics. And the temp penetration rate — temporary jobs as a percent of total employment — rose to 1.63% in June from 1.58% in May.
However, temp jobs were still down by 699,000 year over year.
Looking at total nonfarm employment, the number of jobs in the US rose by 4.8 million in June when compared to May but remains down on a year-over-year basis.
“Despite a 6% rise over the last two months, total nonfarm employment stands 10% below its peak from February of this year,” said Tony Gregoire, director of custom research at SIA.
The BLS noted the 4.8 million increase in nonfarm jobs in June follows an increase of 2.7 million in May and the gains reflect an increase in economic activity following the Covid-19 shutdowns in March and April. Employment during those two months fell by a combined 22.2 million.
Industries gaining jobs in June included “leisure and hospitality,” which added 2.1 million; retail trade, which added 740,000 jobs; and “education and health services,” which added 568,000.
The US unemployment rate fell to 11.1% in June from 13.3% in May and 14.7% in April. But the number remains well above the 3.7% in June 2019.
In addition, the college-level unemployment rate fell to 6.9% in June from 7.4% in April. Again, well above the 2.1% rate in June 2019.
The Conference Board reported the US unemployment rate is 12.3% when adjusting for a recent misclassification error by the BLS. The Conference Board also noted the increase in jobs was spurred by states reopening their economies but the resurgence in Covid-19 cases could put a damper on that momentum. Layoffs continue to remain historically high.
“In sum, the grim reality is that the unemployment rate may remain in the 11% to 15% range for the foreseeable future,” according to The Conference Board. “In comparison, the unemployment rate after the Great Recession peaked at 10% for one month. The faster we realize, this the more likely we are to avoid a second Great Depression.”
Average hourly earnings for all employees on private nonfarm payrolls fell by 35 cents in June to $29.37, according to the BLS. Job gains by lower-paid workers put downward pressure on the average.
Separately, the US Department of Labor reported initial jobless claims for the week ended June 27 fell by 55,000 from the previous week to 1.4 million.
The four-week moving average of weekly jobless claims fell by 117,500 from the previous week to a total of 1.5 million.
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