US Economy Added 222K Jobs in June, But Wage Growth Remains Below Great Recession Levels

The jobs numbers are out for June from the Bureau of Labor Statistics.

In a nutshell, 222k jobs were added (good) and average hourly wages YoY were flat after an upward revision from May.

In June, health care added 37,000 jobs. Employment increased in ambulatory health care services (+26,000) and hospitals (+12,000). Health care has added an average of 24,000 jobs per month in the first half of 2017, compared with a monthly average of 32,000 jobs in 2016.

Social assistance employment increased by 23,000 in June. Within the industry, employment continued to trend up in individual and family services (+12,000) and in child day care services (+8,000). Social assistance has added 115,000 jobs over the last 12 months.

Employment in financial activities rose by 17,000 in June and has grown by 169,000 over the year. Securities, commodity contracts, and investments added 5,000 jobs over the month.

In June, mining employment grew by 8,000, with most of the growth in support activities for mining (+7,000). Since a recent employment low in October 2016, mining has added 56,000 jobs.

Employment in professional and business services continued to trend up in June (+35,000) and has grown by 624,000 over the last 12 months.

Employment in food services and drinking places also continued on an upward trend in June (+29,000). The industry has added 277,000 jobs over the year.

Employment in other major industries, including construction, manufacturing, wholesale trade, retail trade, transportation and warehousing, information, and government, showed little change over the month.

In summary, education and health were the leaders followed by waitstaff and bartenders. Government employment was third. Other than government, mostly minimum wage jobs were added.

US Average Hourly Earnings YoY continue to remain lower than during The Great Receession and just prior.

U-3 unemployment rose slightly and is below the natural unemployment rate. But wage growth is still stalled.

The reaction in the 10Y Treasury yield? Down, then up, then meh.

Federal Reserve Chair Janet Yellen will be speaking to Congress today and tomorrow. Here is a video of her triumphant entrance to the US Senate where she will explain why wage growth is stalled.

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