The US economy added 850,000 jobs in June

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It was the biggest monthly jobs gain since August 2020, when the economy added 1.6 million jobs.

The hospitality and leisure sector grew the strongest, having the most ground to cover after the pandemic devastated the travel and service industries. That sector added 343,000 jobs. More than half of them were at restaurants and bars.

America's once-strong labor market is still far from being back to normal, down 6.8 million jobs compared with February 2020. According to the report, 6.2 million people reported that they didn't work at all or worked less because their employer had been affected by the pandemic.The unemployment rate stood at 5.9%, up from 5.8% in May, the Bureau of Labor Statistics reported Friday.

Normally, workers who quit their jobs aren't eligible for benefits. But the pandemic has changed the rules slightly, making certain circumstances -- such as child care issues or health conditions -- reasons that some benefits can stay in place. But that didn't move the needle much in June yet. Early data from states that ended those programs shows that the move didn't push workers to resume their job searches, said Cailin Birch, global economist at The Economist Intelligence Unit, in emailed comments.

 

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