June Payrolls Surge 288K, Above Expectations, Unemployment Rate Tumbles To 6.1%

Tyler Durden's picture




 

For once the ADP was actually spot on: in June the US economy added 288K nonfarm payrolls, far above the 215K expected, and above the upward revised 224K from June. Further, May jobs were revised from 282K to 204K. This was the fifth consecutive month of job gains over 200K. The unemployment rate tumbled to 6.1%, well below the 6.3% expected. The brth/death adjustment added 121K jobs, compared to 205K previously, and a total of 452K so far in 2014.

Private Payrolls rose 262K, above the 215K expected. Average hourly earnings rose as expected 0.2% from June and 2.0% from a year ago, marginally higher than the 1.9% expected. Finally the weekly hours worked for all employees was 34.5%, same as expected and the same as last month.

 

But perhaps far more importantly, average weekly earnings rose just 2.0% Y/Y, down from 2.1% in May, and effectively declining once again on a real basis, which means that for three months in a row now US workers have seen their wages drop adjusted for inflation.

From the report:

Total nonfarm payroll employment rose by 288,000 in June. Over the past 3 months, job growth has averaged 272,000 per month. In June, employment growth was widespread,  led by gains in professional and business services, retail trade, food services and  drinking places, and health care. (See table B-1.)

Employment in professional and business services rose by 67,000 in June and had averaged 53,000 per month over the prior 12 months. In June, employment within the industry increased in management and technical consulting services (+8,000),  architectural and engineering services (+7,000), and computer systems design and related services (+7,000). Employment continued to trend up in temporary help  services.

Retail trade employment increased by 40,000 in June. Over the prior 12 months, employment in this industry had grown by an average of 26,000 per month. In June, job growth in the industry occurred in motor vehicle and parts dealers (+12,000), building material and garden supply stores (+8,000), and electronics and appliance stores (+7,000).

Employment in food services and drinking places rose by 33,000 in June and has increased by 314,000 over the past year.

Health care employment increased by 21,000 in June, about in line with the prior 12-month average gain of 18,000 per month. Within health care, employment continued to trend up in ambulatory health care services (+13,000) and in nursing and residential care facilities (+6,000).
 
Transportation and warehousing employment increased by 17,000 in June. Over the prior 12 months, this industry had added an average of 11,000 jobs per month. In June, couriers and messengers added 6,000 jobs.

Financial activities added 17,000 jobs in June, with a gain of 9,000 in insurance carriers and related activities. Employment in real estate and rental and leasing continued to trend up in June (+9,000). Financial activities had added an average of 5,000 jobs per month over the prior 12 months.

Manufacturing added 16,000 jobs in June, with all of the increase in durable goods manufacturing. Within durable goods, employment increased in motor vehicles and parts (+6,000) and in computer and peripheral equipment (+3,000).

Wholesale trade added 15,000 jobs over the month and has added 140,000 jobs over the year.

Employment changed little over the month in other major industries, including mining and logging, construction, information, and government. 

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Thu, 07/03/2014 - 08:36 | 4920949 unwashedmass
unwashedmass's picture

 

birth/death? anyone?

Thu, 07/03/2014 - 08:40 | 4920971 Tjeff1
Tjeff1's picture

Does not matter.  All bull shit anyways.

Thu, 07/03/2014 - 08:50 | 4921005 Ignatius
Ignatius's picture

Maybe the NSA should break in and interrupt ALL the calls it monitors and ask "Are you working?"

Thu, 07/03/2014 - 08:52 | 4921016 Rubbish
Rubbish's picture

Green shoots...

Thu, 07/03/2014 - 08:54 | 4921022 economics9698
economics9698's picture

When there is inflation it makes it cheaper to hire…in the short run.  

Thu, 07/03/2014 - 08:57 | 4921037 eclectic syncretist
eclectic syncretist's picture

Everything is being manipulated into place for raising interest rates.

Thu, 07/03/2014 - 09:15 | 4921083 Headbanger
Headbanger's picture

Bingo!!  Fed must do all it can now to save the U.S. dollar from becoming worthless as it ceases to be the world currency.

Thu, 07/03/2014 - 09:16 | 4921089 RevRex
RevRex's picture

I'm calling bullshit, just like every other economic indicator during the Obowelmovement

Thu, 07/03/2014 - 09:31 | 4921129 Pure Evil
Pure Evil's picture

I had an Obowelmovement earlier.

The explosive diarrhea nearly lifted me of the toilet seat.

Thu, 07/03/2014 - 08:53 | 4921017 insanelysane
insanelysane's picture

They want the sheeple to spend, spend, spend this summer.  These numbers will be revised down to equal expectations in a couple of months.  I believe the same thing was done last year but I am too lazy to look up the reports from September.

Fri, 07/04/2014 - 18:28 | 4925619 Stalkedbyhackers01
Stalkedbyhackers01's picture

Hi Ignatius it is your favorite person. I'm curious where is the site you people are going pertaining to me? Ya I'm that guy. I'm just wondering where the hackers posted it all.

Thu, 07/03/2014 - 08:59 | 4921043 FreeNewEnergy
FreeNewEnergy's picture

unwashedmass, the birth/death adjustment is a calculation by the BLS, estimating the number of new jobs created by new businesses (birth), versus the number of jobs destroyed by businesses closing (death).

IMO, the numbers are a complete fabrication, and often are responsible for more than half (as was the case this month) or almost all (last month) of total job "growth."

I now present my new version of the Lord's Prayer, updated as the "Yellen Shriek:"

Our fiat,

Which art in dollars,

hollow be thy worth.

Thy stocks go up,

thy vix be down

on CBOE as it is on Wall Street.

Give plebes this day their daily crumb of bread

and deliver us thy dividends,

as we distribute to the one percent.

And lead us not into recession,

but deliver us more POMO,

for the kingdom and the power.

and the glory resides at the Fed.

Amen.

Thu, 07/03/2014 - 09:13 | 4921078 thecoloredsky
thecoloredsky's picture

brilliant!

Thu, 07/03/2014 - 09:15 | 4921084 DeadFred
DeadFred's picture

Birth death and the other adjustments are completely controlled by .GOV and are how you get a glimpse behind the curtain. The translation of today's number is "No QE for you!". At least not until the crash brings it back, temporarily, like they temporarily suspended the gold standard.

Thu, 07/03/2014 - 09:32 | 4921137 rubiconsolutions
rubiconsolutions's picture

It won't be long when so many people drop out of the work force and aren't being counted that we'll have 0.0% unemployment. Ya gotta love common core math and the way it has helped the BLS.

/s

Thu, 07/03/2014 - 08:36 | 4920950 Serfs Up
Serfs Up's picture

Time to end QE, then!  No more.  Finis.  

 

Thu, 07/03/2014 - 08:39 | 4920963 Sudden Debt
Sudden Debt's picture

JOB WELL DONE! UP TO THE NEXT!

RAISE RATES TO 7%!

Thu, 07/03/2014 - 08:37 | 4920952 katchum
katchum's picture

I challenge you to put a negative spin on that...

Thu, 07/03/2014 - 08:38 | 4920966 babylon15
babylon15's picture

I can create a few jobs too if you let me borrow $4 trillion at 0%.

Thu, 07/03/2014 - 08:56 | 4921036 economics9698
economics9698's picture

At the onset of inflation people want to buy stuff now instead of later.  

Thu, 07/03/2014 - 08:43 | 4920984 Ignatius
Ignatius's picture

Angling for a network job, are ya?

Thu, 07/03/2014 - 08:48 | 4921001 Greenskeeper_Carl
Greenskeeper_Carl's picture

Ive heard enough, Id say he is qualified for CNBS. Primetime, bitches

Fri, 07/04/2014 - 18:29 | 4925622 Stalkedbyhackers01
Stalkedbyhackers01's picture

Indeed I am Ignatius. Funny how stuff I type on my own computer ends up being read by others funny how that works. You're one of those who like to watch, mind linking me the site where all the data mined info is?

Thu, 07/03/2014 - 08:46 | 4920995 tarsubil
tarsubil's picture

What is with these people coming out of the wood work?

Thu, 07/03/2014 - 09:39 | 4921178 Pure Evil
Pure Evil's picture

Are you trying to impune cockroaches and rodents?

Thu, 07/03/2014 - 08:52 | 4921012 centerline
centerline's picture

You need to look at the bigger picture there numnut.

Thu, 07/03/2014 - 08:54 | 4921025 NoDebt
NoDebt's picture

Challenge accepted.

This will put pressure on the Fed to hasten the pace of tapering and possibly move up the timeframe for an interest rate increase.  Which could be VERY bad for the markets.  

Thu, 07/03/2014 - 09:07 | 4921056 eclectic syncretist
eclectic syncretist's picture

The fed will continue to manipulate employment and inflation data, so that it can raise interest rates and thereby purposefully crash the markets and take the blame for it, claiming excessive speculation exacerbated their policy.  In this way the fed will reassert their power over the economy in the public conciousness for the foreseeable future, while pouring ever more lucre into banster coffers.

Thu, 07/03/2014 - 09:22 | 4921104 NoDebt
NoDebt's picture

You think the Fed will "take the blame" for a crash (whether they caused it or not)?  I doubt that very seriously.

Thu, 07/03/2014 - 09:24 | 4921111 katchum
katchum's picture

They might even start increasing interest rates, because we know that the employment to population ratio is correlated to the interest rates and it's improving. You shouldn't be afraid of rate hikes.

http://katchum.blogspot.be/2013/09/federal-funds-rate-vs-unemployment.html

Thu, 07/03/2014 - 08:57 | 4921038 Save_America1st
Save_America1st's picture

challenge accepted...

It's all manipulated and full of lies, spin, and "mope".

MOPE: Management of Perspective Economics. The foolish idea that if The Fed and the media create the image of growth and the belief that things are getting better, then the economy will actually grow and things will actually get better.

Thu, 07/03/2014 - 09:23 | 4921106 Wait What
Wait What's picture

the Fed believes in the law of attraction (positive thinking can create life-changing results), which is probably more scientific than the idiotic 'economic laws' it uses to guide its decisions.

"if you believe hard enough, anything you want will happen"

http://en.wikipedia.org/wiki/The_Secret_%28book%29

Thu, 07/03/2014 - 09:06 | 4921066 surf0766
Thu, 07/03/2014 - 09:14 | 4921070 drchris
drchris's picture

QE is $65,000,000,000 a month. That means that each month you could hire 1.3 million people at $50k a year. In other words, employment has to increase by 1.3 million jobs a month to keep pace with the Fed's balance sheet.

Thu, 07/03/2014 - 10:21 | 4921336 Save_America1st
Save_America1st's picture

yeah...and from 2009 until something like 2015 or 2016, the U.S. needed to add minimum 250,000 REAL jobs per month, every single month in order to get out of the shitter from the collapse of 2008.

That's 250,000 per month for somewhere around 84 to 96 months straight! 

Has that been achieved for real even a handful of months total in the last 60 months? 

Not....even....close.

Game over for U.S.  It's not happening because they don't want it to happen.  They don't want actual, meaniful, manufacuring-type job growth.

They are purposfully deindustrializing America and moving everything offshore while they also purposely collapse our monetary system.  All for the great reset and the move to a fully militarized, authoritarian America plunged into chaos to bring in the NWO rulers.

It's going to take a very bloody fight to ever have a slight chance of getting outta this mess. 

Thu, 07/03/2014 - 08:37 | 4920953 fonzannoon
fonzannoon's picture

SPY 2000 today. get your bud light and bubba burgers, it's party time.

Thu, 07/03/2014 - 08:41 | 4920960 buzzsaw99
buzzsaw99's picture

not in bizarro world it isn't. from wiki: Is big crime to make anything perfect on Bizarro World!" In one episode, for example, a salesman is doing a brisk trade selling Bizarro bonds: "Guaranteed to lose money for you"...

Thu, 07/03/2014 - 08:52 | 4921014 NoDebt
NoDebt's picture

They're called JGBs.

Thu, 07/03/2014 - 08:37 | 4920954 buzzsaw99
buzzsaw99's picture

Bernoulli ftw

Thu, 07/03/2014 - 08:37 | 4920955 wallstreetapost...
wallstreetaposteriori's picture

@ Tyler

 May jobs were revised from 282K to 204K

 

should be 304K

Thu, 07/03/2014 - 08:38 | 4920959 wallstreetapost...
wallstreetaposteriori's picture

I know....get so used to these 2's that a BS 3 throws everyone off.

Thu, 07/03/2014 - 08:38 | 4920958 MFL8240
MFL8240's picture

Let the circus begin!

Thu, 07/03/2014 - 08:55 | 4921032 RaceToTheBottom
RaceToTheBottom's picture

Not my circus, not my monkeys....

Thu, 07/03/2014 - 08:38 | 4920961 Grande Tetons
Grande Tetons's picture

Nice headline for the MSM as Johnny Lunchbucket buys his hot dogs on the way home. 

Thu, 07/03/2014 - 08:39 | 4920962 Tjeff1
Tjeff1's picture

Taper on. Look at the 10 year!

http://www.marketwatch.com/investing/bond/10_year

Thu, 07/03/2014 - 09:05 | 4921062 Save_America1st
Save_America1st's picture

that's what they wanted...something over 2.65 or so.  And bingo...they always get what they want.  For now...but those days may be coming to an end one day soon enough.

Once again as clockwork the usual 8am smash in PM's occurs.  But notice the effects these days last only minutes rather than hours and days.  Paper silver has rebounded nicely back above 21 already.

Personally, I'd like to see one more prolonged smash down under 20 so we can all scoop up another big dip opportunity.  But the rebounds just seem to be too strong these days to make their attacks last very long.  They would need successive days for about a week or more of constant monkey hammering to get it back into the high 19's.

Keep some of your dry powder at the ready, bitchez.  There still may be one more nice BTFD opportunity for phyzz before the end of July.  Then it may be off to the races to 25 before we see another extended pull-back into the 21's again for the next phyzz buying opportunity. 

They'll be tightly managing the incline from there on out as best as they can until we break back into the 40's next year.  The bull should be on a rampage by then and nearly impossible to control at that point.

 

Thu, 07/03/2014 - 08:41 | 4920965 Ignatius
Ignatius's picture

Unemployment at only 6.1%!!!

These are the good times, boys.  I'll make it a point to share this statistic with the 80% of unemployed college grads, class of '14.

 

Thu, 07/03/2014 - 08:41 | 4920980 CrimsonAvenger
CrimsonAvenger's picture

Yep, these are the salad days. Except salad now costs $4 for an 8 oz bag.

Thu, 07/03/2014 - 09:15 | 4921086 TrumpXVI
TrumpXVI's picture

Yup.  This is freakin' GREAT news.  For all practical purposes, 6.1% is basically FULL employment (or close enough).

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