US Nonfarm Payroll Increases by 209,000 in June; Unemployment Declines to 3.6%

The US Bureau of Labor Statistics (BLS) reported on Friday (7-7-23) that total nonfarm payroll employment increased by 209,000 in June. Nonfarm employment has grown by an average of 278,000 per month during the first 6 months of 2023, lower than the average of 399,000 per month in 2022.

Job growth was widespread in June, with notable increases in the following sectors:

• Government employment rose by 60,000, with state governments adding 27,000 jobs and local governments adding 32,000. Overall, government has added an average of 63,000 jobs per month since the start of 2023.
• Health care added 41,000 new jobs. The sector has added an average of 42,000 jobs per month thus far this year, similar to the average gain of 46,000 per month in 2022.
• Social assistance added 24,000. Job growth has averaged 22,000 per month since the start of 2023, in line with the average of 19,000 per month in 2022.
• The construction sector added 23,000 new jobs. Employment in the construction sector has increased by an average of 15,000 since the start of this year, compared to an average of 22,000 per month in 2022.
• Employment in professional and business services changed little, adding 21,000 jobs. Monthly job growth in the industry has averaged 40,000 thus far in 2023, down from 62,000 per month in 2022.
• Leisure and hospitality was little changed, adding 21,000 new jobs. This marks the third consecutive month with little change. Employment in the industry remains below its February 2020 level by 369,000.

Employment was little changed in other major industries, including mining, quarrying, and oil and gas extraction; manufacturing; wholesale trade; information; financial activities; and other services.

In June, the unemployment rate changed little at 3.6%, and the number of unemployed persons was mostly flat at 6.0 million. The unemployment rate has ranged from 3.4% to 3.7% since March 2022.

The BLS notes that monthly revisions result from additional reports received from businesses and government agencies since the last published estimate and from recalculations of seasonal factors. As a result, the change in total nonfarm payroll employment for April was revised down by 77,000—from 294,000 to 217,000—and the change for May was revised down by 33,000—from 339,000 to 306,000. With these revisions, employment in April and May combined is 110,000 lower than previously reported.