While the quantitative aspect of the June jobs report was stellar, so stellar in fact that not a single Wall Street forecaster expected it would happen, the next question is what was the qualitative component of this unprecedented Establishment Survey beat. Here are the details of the 287K jobs supposedly added:
- Leisure and Hospitality added 59,000 minimum wage jobs
- Education and Health also added 59,000 mostly minimum wage jobs
- Retail Trade added 30,000 certainly minimum wage jobs
With more than half of job additions being minimum wage one can see why the June average hourly earnings increase was below the expected 0.2% (and 2.7% Y/Y), instead printing at 0.1% and 2.6%.
Where were the rest of the job increases: Infromation +44K, Professional Services (ex temps) +23K, Government +22K, Financial Services supposedly added 16K just dont tell all those recently laid off bankers, temp workers rose by 15K, and somehow even manufacturing added 14K despite the ADP report seeing the biggest drop in mfg employment since 2010.
Were there any job losses: yes, in mining and logging, which lost 5K jobs and transportation and warehousing which saw a 9.4K drop as the heavy trucking collapse hits home.
The full breakdow.