USA Unemployment Rate fell to 11.1% in June

June 2, 2020

Total nonfarm payroll employment climbed 4.8 million in June, as the unemployment rate fell to 11.1%, according to a report by the U.S. Bureau of Labour Statistics (BLS). The performance was due to the continued resumption of economic activity that had been curtailed in March and April, stemming from the coronavirus (COVID-19) pandemic and efforts to contain it. BLS mentioned that, “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.”

Leisure and hospitality increased by 2.1 million in June 2020, accounting for almost two-fifths of the total nonfarm employment gain. While in the food services and drinking places, employment rose by 1.5 million. Additionally, the accommodation industry increased in June by 239,000 jobs. Employment in amusements, gambling, and recreation rose by 353,000 in June. Notably, employment in education and health services climbed by 568,000 jobs in June. Employment in health care rose by 358,000, private education increased by 93,000 and social assistance rose by 117,000 jobs over the month. Whereas, employment in professional and business services added 306,000 jobs, retail trade went up by 740,000 jobs, manufacturing increased by 356,000 jobs while construction employment rose by 158,000 jobs in June. Employment also increased in financial activities (32,000) and wholesale trade (21,000) in June, as well as government employment by 33,000 jobs. Employment in transportation and warehousing (99,000) increased while mining lost 10,000 jobs.


Notably, BLS stated, “The number of unemployed persons who were on temporary layoff decreased by 4.8 million in June to 10.6 million, following a decline of 2.7 million in May. The number of permanent job losers continued to rise, increasing by 588,000 to 2.9 million in June. The number of unemployed reentrants to the labor force rose by 711,000 to 2.4 million.”

In June, the number of unemployed persons who were jobless for 5 to 14 weeks decreased by 3.3 million to 11.5 million. Notably, the total number of persons jobless for 5 to 14 weeks, accounted for 65.2% of the unemployed. While, the number of long-term unemployed (those jobless for 27 weeks or more) increased by 227,000 to 1.2 million. However, the number of unemployed persons who were jobless less than 5 weeks decreased by 1.0 million in June to 2.8 million.


The labour force participation rate for June rose by 0.7 percentage point to 61.5%, while the employment population ratio increased 1.8 percentage points to 54.6%. In June, the number of persons who usually work full time climbed by 2.4 million to 118.9 million, and the number of persons who usually work part-time rose by 2.4 million to 23.2 million. Nonetheless, persons employed part-time for economic reasons declined by 1.6 million to 9.1 million in June. Based on BLS assessment, “these individuals, who would have preferred full-time employment, were working part-time because their hours had been reduced or they were unable to find full-time jobs.”


In June, a total of 2.5 million individuals were slightly attached to the labour force. These persons were not in the labour force, wanted and were available for work, and had looked for a job in the last year. Of the marginally attached, 681,000 persons were classified as discouraged workers in June, little changed over the month. These persons are not currently seeking work as they believe no jobs are available for them.



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