The June jobs report showed growth was increasingly uneven as the labor market showed signs of weakness.
US Non-Farm Payrolls increase 206,000 in June, according to the Labor Department, but jobs The profit is very limited. Health care and social assistance added 82,400 jobs, while government added 70,000 jobs. Several categories saw employment decline, including manufacturing.
Health care and social assistance have been a major component of the labor market recovery since the pandemic. Outpatient health care services added 22,000 jobs in June, while hospitals added 21,700.
Meanwhile, education accounted for 17,200 jobs added in the government sector. Both state and local governments added non-education jobs.
Professional and business services were the weak spot, losing 17,000 jobs. Jeffrey Roach, chief economist at LPL Financial, pointed out that unemployment rose among workers with at least a bachelor’s degree.
“The rising unemployment rate, especially for those with at least a bachelor’s degree, suggests that the labor market is cooling. So far, we haven’t seen any signs of apocalypse in the labor market, but investors should be wary when the labor market is supported by government payrolls,” Roach said in a note Friday morning.
One potential bright spot in the report was the construction industry, which added 27,000 jobs, up from an average gain of 20,000 over the past year, according to the Labor Department.
