NFP Down 125,000, Unemployment Rate 9.5%, +83K Private Payrolls With +147K Birth Death, Workweek Down 0.1 Hours - Another Disappointment

Private payrolls were a disappointment at just +83k, versus consensus of 112k. Birth-death added 147k. Census removed 225k, in line with consensus. Temporary help was another terrific "green shoot" increasing by +21k. And the Unemployment rate dropped to 9.5% because 652k people walked out of the labor force, which dropped from 154.393 million to 153.741 million. Another big miss for the recovery story and another confirmation of the data point. The only improvement was the percentage of those unemployed 26 weeks and longer dropped from 46% to 45.5%, or from 6.763 million to 6.751 million. Yet the most troubling indicator was the downward inflection in the average workweek, which once again dropped by 0.1 hours to 34.1 hours, while in manufacturing the drop was a severe 0.5 hours, following a rise of 0.4 hours in May. The slack in the laborforce is once again building up. Also, average hourly earnings declined by 0.1%, after an increase of 0.2% in May.

From the PR:

Total nonfarm payroll employment declined by 125,000 in June, and the unemployment rate edged down to 9.5 percent, the U.S. Bureau of Labor Statistics reported today. The decline in payroll employment reflected
a decrease (-225,000) in the number of temporary employees working on  census 2010. Private-sector payroll employment edged up by 83,000.

Total nonfarm payroll employment decreased by 125,000 in June, reflecting the departure of 225,000 temporary Census 2010 workers from federal government payrolls. Total private employment edged up over the month (+83,000) due to modest increases in several industries. So far this year, private-sector employment has increased by 593,000  but in June was 7.9 million below its December 2007 level.

In June, the average workweek for all employees on private nonfarm payrolls decreased by 0.1 hour to 34.1 hours. The manufacturing workweek for all employees decreased by 0.5 hour to 40.0 hours; this followed an increase of 0.4 hour in May. The average workweek for production and nonsupervisory employees on private nonfarm payrolls was unchanged at 33.4 hours in June.