Job growth in June was driven by industries recuperating from pandemic-induced losses, and continued business investment in sectors still benefiting from formidable demand for their goods and services, even as borrowing costs increase.
Employment is now just a touch away from prepandemic levels, down 524,000, or 0.3 percent, from February 2020. A recovery in private-sector job creation is responsible for the overall gains. Government employment has lagged, with a shortfall of 664,000.
Job growth in educational services was solid, seasonally adjusted, suggesting that employment in that sector fell less than usual at the start of summer.
A recent wave of layoffs in the tech and housing sectors have made headlines, yet employment in professional and business services is 880,000 above its February 2020 level, and overall hiring last month showed no sign of slowing.
“High inflation and a shift of consumer spending from goods to services is causing job losses in some sectors of the economy, but most workers who are losing jobs are finding new ones quickly,” said Bill Adams, the chief economist for Comerica Bank, a large commercial bank based in Dallas.
With the large baby boomer population continuing to age, demand for health care workers is growing and the sector added 57,000 jobs in June, leaving it 1.1 percent below its prepandemic levels.
There was also a significant pickup in jobs at child care centers, good news for a sector that has faced a particular labor shortage. Though labor force participation in the economy overall was mostly flat compared with May.
Leisure and hospitality businesses, which are benefiting from an early summer surge in travel, dining and entertainment, added 67,000 jobs, including 41,000 in food services and drinking places — a welcome boost to the sector, which is still 1.3 million jobs short of its prepandemic employment level.
Source: Economy - nytimes.com
