The Labor Department’s June 2021 reports show that actual employee-hiring in the U.S. has increased by 850,000, which is more than 706K projected by Dow Jones. The increase was linked to non-farm payrolls, which denotes that U.S. businesses have been stepping up in their recovery initiatives to make up for lost revenues incurred during the 2020 pandemic outbreak.
The securities markets reacted positively as futures on major indexes exhibited modest gains before trading closed for the July 04 holiday weekend.
Chief Strategist Seema Shah at Principal Global Investors remarked that the Labor Department’s latest job reports is an all-out positive indicator for the markets. Ms. Shah further commented to CNBC that the improvement is reflective of the slight easing of constraints that have held back the employment market during the past months.
Industries Where Hiring Accelerated During the Month of June
The acceleration of hiring during the month of June brings the total jobs lost and recovered to 15.6 million. More than 22.3 million U.S. citizens lost their jobs during the height of the pandemic outbreak in March and April 2020 as a result of government-imposed shut downs and business restrictions.
That being the case, there is still need for greater improvement as the total employment level is still below 7.13 million below the pre-pandemic level reported in February 2020.
The hospitality industry has been seeing the highest number of returning workers, particularly in restaurants, bars, hotels and similar businesses. As restrictions eased throughout the country, hiring in the hospitality industry took on 343,000 new workers, of which 194,000 are attributed to bars and restaurants.
Some sectors of the services industry such as personal and laundry services, hired an additional 29,000, while social assistance jobs added 32,000 employees. Workers in the mining industry increased by 10,000 while wholesale traders added 21,000 new hires. Manufacturers also stepped up with their activities, which required the hiring of 15,000 employees during the month.
The positivity of the report about increased employment was enhanced by a corollary acceleration of wage gains. As Dow Jones had estimated, average hourly earnings of workers increased by 0.33%, yielding a 3.6% increase in wages based on a year-on-year comparison.