June Unemployment

The June numbers were released about 30 minutes ago. The “headline” unemployment number remained unchanged at 8.2%. The interesting news is in the other numbers.

1. African-Americans did very poorly in June.  (Table A-2) While White unemployment was steady at 7.4%, African-American unemployment jumped from 13.6% to 14.4%. African-American men started stayed at 14.2%; women increased from 11.4% to 12.7%; teenagers (both sexes) rose from 36.5% to 39.3%. This is, of course, devastating news for the African-American population.
2. The “headline” number may have stayed the same, but the more inclusive number (U-6) increased from 14.8% to 14.9%. This means more people are underemployed, and more people have given up looking for work.
3. Moving on to the change in the number of jobs, there was a gain of 80,000 jobs in June. Of that increase:
a) 25,200 were in Temporary Help Services
b) 13,000 were in Healthcare
c) 15,100 were in Food services and drinking places
d) 18,100 were in Local government, excluding education
e) 10,000 were in Specialty trade contractors
f) 14,000 were in Durable Goods Manufacturing
g) -14,200 (that is, a loss) were in Local government education
I would argue, then, that half of the job increase came from temp jobs (25K) and restaurants & bars (15K). Nothing to brag about.


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