Temp Keeps Growing As Nation Adds 223,000 Jobs In June

Employment agencies were among the biggest contributors last month to the 223,000 new jobs added to the U.S. economy. Temp agencies grew their workforce by 19,800, while placement services and registries added another 9,300 jobs.

The report this morning from the Labor Department’s Bureau of Labor Statistics said that overall, the nation’s service sector accounted for nearly all the job growth in June, contributing 222,000 new non-farm jobs. Goods producers, which include mining, construction and manufacturing, added a mere 1,000. All counts are seasonally adjusted.

Unemployment fell to 5.3 percent.

Since the beginning of the year, staffing agencies have added 51,400 new jobs. Last year they added 68,300. In June, staffing agencies employed 2.9 million workers, the highest number since the government began keeping records.

This morning’s jobs report was below the 233,000 consensus estimates of labor economists, but not so much so that it is likely to be seen as any sort of indicator. Summer’s first month is historically the start of a slower hiring period. More closely watched by the Federal Reserve and Wall Street are wage growth — flat in June — and the number of Americans in the labor force. That percentage declined in June to 62.6 percent, the lowest level since 1977.

Econ indices June 2015.finalBoth of those indicators suggest that job growth has not yet reached the point where labor demand is keen enough to bring sidelined workers back into the labor force and increase wages above an annual 2 percent where it has been for most of the post-recession recovery. Meanwhile, more workers each month drop out of the official labor pool count. Because they aren’t looking for work, they aren’t counted as unemployed.

Article Continues Below

In June the number of unemployed persons declined by 375,000 to 8.3 million. An alternate count, which includes workers who want jobs but can’t find them and those working part-time who want full-time jobs, put the nation’s unemployed and “underutilized” at 10.5 percent, a sharp drop from the 12 percent of a year ago. Some found jobs while others may have simply given up and are no longer in the labor force.

June’s job report also brought a 60,000 job decrease in the initial reports for April and May. The Labor Department cut April from 221,000 to 187,000 and May’s count from 280,000 to 254,000. Since January, 1.25 million jobs have been created. Last year, the first six months saw 1.512 million new jobs. Economists blame severe winter weather and a port strike on the West coast for slowing job growth at the beginning of the year.

Among the biggest gainers in June were:

  • Healthcare +40,100, with 22,600 of those jobs in doctor’s offices, outpatient facilities and home health services. Hospitals added 10,600 jobs.
  • Retail +32,900. Clothing and general merchandise stores added a combined 19,600 jobs. Food and beverage stores added 9,000 jobs.
  • Leisure and hospitality +22,000. Bars and restaurants added 29,900 jobs. Offsetting that growth were declines in hotel jobs and sports and entertainment venues.
  • Finance and insurance firms +14,700 with strong growth coming from Wall Street +7,400 and insurance related businesses +8,700.
  • Transportation and warehousing +17,100.

The nation’s services sector grew by 222,000 jobs. Goods producers added a mere 1,000 new jobs. That sector had spotty job growth; manufacturers added 4,000 jobs, but the downturn in the petroleum industry cost the mining sector 3,000 jobs. For the first time in more than a year, the construction industry shed as many jobs as it gained. Residential builders, which had been expanding their work force, cut 6,100.

John Zappe is the editor of TLNT.com and a contributing editor of ERE.net. John was a newspaper reporter and editor until his geek gene lead him to launch his first website in 1994. He developed and managed online newspaper employment sites and sold advertising services to recruiters and employers. Before joining ERE Media in 2006, John was a senior consultant and analyst with Advanced Interactive Media and previously was Vice President of Digital Media for the Los Angeles Newspaper Group.

Besides writing for ERE, John consults with staffing firms and employment agencies, providing content and managing their social media programs. He also works with organizations and businesses to assist with audience development and marketing. In his spare time  he can be found hiking in the California mountains or competing in canine agility and obedience competitions.

You can contact him here.


Leave a Comment

Your email address will not be published. Required fields are marked *