U.S. nonfarm payrolls rose above consensus expectations in June. Nonfarm payrolls rose 4.8 million, as compared with consensus forecasts of a rise of 3 million. Jobless rate also rebounded in the month, dropping to 11.1 percent from May’s 13.3 percent. The number of unemployed persons fell 3.2 million to 17.8 million.
Job gains were broad based throughout industries, with especially large gains in leisure and hospitality, retail trade, education and health services, and manufacturing.
People on temporary layoff dropped 4.8 million in June to 10.6 million, as people were called back to work; however, the number of people on permanent layoff rose 588k, to 2.9 million. The share of workers on permanent layoff has been rising, reaching 16.2 percent in June from May’s 10.9 percent.
The rebound of labor market continued in early June. The jobless rate’s improvement is a welcome sign, especially as it came along with a reported rebound in the potential number of workers “misclassified” as “employed but absent from work”, noted TD Economics in a research report.
