Have a nice job day and welcome to On The Money. I’m Sylvan Lane, and here’s your evening guide to everything to do with your bills, your bank account, and your bottom line.
THE BIG DEAL – The economy adds 850,000 robust jobs in June, beating expectations: The United States created 850,000 jobs in June, exceeding expectations as growing demand for a wide range of services disrupted by the COVID-19 pandemic fueled the labor market, according to data released Friday by the Department of Job.
- The unemployment rate edged up to 5.9%, the report said, but the monthly commute far exceeded projections by economists, who expected the United States to gain about 700,000 jobs last month.
- The labor force participation rate has remained around 61.6 percent, a sign that many Americans are still unable to return to the workforce.
- There were also 6.4 million Americans who did not look for work in June – and therefore not counted as unemployed – but who want to work, up from 5 million before the pandemic.
Despite this, strong job gains in sectors hit hard by the pandemic and a sharp drop in the number of Americans working part-time when they would rather work full-time portend an accelerated rebound in COVID-19.
I break it down here.
The big takeaways:
- The leisure and hospitality industry dominated the job supply in June with a gain of 343,000, a promising sign for a sector devastated by the pandemic. Restaurants and bars added 194,000 of these jobs, followed by hotels with 75,000 and arts, entertainment and recreation with 74,000 new jobs.
- The month of June saw a substantial decrease in the number of people who were prevented from working full time for reasons related to COVID-19, including health concerns and childcare responsibilities.
- While a jobs report won’t be enough to cement Biden’s agenda, it could prove useful in ongoing negotiations over infrastructure spending, the debt ceiling, and other areas where Republicans are eager to grasp the signs of a slowing recovery.
GOOD TO KNOW
- The Federal Trade Commission announced on Friday that it is charging chip provider Broadcom with monopolize the market.
- The Ministry of Transport is expected to come up with a proposal that would require airlines to reimburse passengers for checked baggage fees if an airline doesn’t deliver the bags to passengers early enough, the Associated Press reported.