The U.S. economy added 147,000 jobs in June, “above the gain of 110,000 jobs economists polled by The Wall Street Journal had expected.” Total nonfarm payroll employment increased by 147,000 in June, with boosts from the healthcare sector as well as state and local government.
A significant portion of June's payroll gains came from increases in state and local government employment. Experts say the “reliance on state and local governments here actually shows that the June payrolls gain was weaker than expected.”
Job gains and losses, by sector:
While "federal-government layoffs were a modest drag on payrolls," government employment overall increased by 73,000 due to the addition of state and local government jobs.
The "increase in overall government jobs" was the "biggest since March of last year," and "is due to state and local jobs, not federal," according to Bloomberg.
State government employment increased by 47,000, the vast majority of which was in education (+40,000).
The healthcare sector added 39,000 jobs, "similar to the average monthly gain of 43,000 over the prior 12 months."
Other sectors showed "little change" in employment.
Unemployment and labor force participation:
Unemployment decreased from 4.2% to 4.1%, and the "number of unemployed people … changed little."
The number of "long-term unemployed" was up by 190,000 and "long-term unemployed accounted for 23.3%" of all unemployed individuals.
The labor force participation rate "changed little" at 62.3% and the “employment-population ratio held" at 59.7%. The number of people "marginally attached to the labor force" was up 234,000 to 1.8 million.
Average workweek and earnings:
Average hourly earnings (for all employees on private nonfarm payrolls) increased by 0.2% (8 cents) to $36.30.
The average workweek (for all employees) decreased by 0.1 hour to 34.2 hours, while the average workweek in manufacturing “held at 40.1 hours, and overtime was unchanged at 2.9 hours.”
Revisions:
The Bureau of Labor Statistics revised its last two reports, making the “number of jobs added in April and May … a combined 16,000 higher than prior estimates.”
Read more via Bureau of Labor Statistics, The Wall Street Journal, Bloomberg
NOTE: The ADP Employment Report and the Bureau of Labor Statistics Jobs Report utilize different data and therefore provide differing reports. ADP's report includes only private sector data.
The U.S. private sector "shed 33,000 jobs in June," according to the latest ADP National Employment Report.
The ADP report fell far short of the Dow Jones economists' expectation of 100,000 jobs added in June. Experts say the report may be a “potential sign that the economy may not be as sturdy as investors believe.”
Job gains and losses by sector:
Job losses were seen across professional and business services (-56,000), education and health services (-52,000) and financial activities (-14,000) sectors.
Job gains were seen in the leisure and hospitality (+32,000), manufacturing (+15,000), trade/transportation (+14,000), construction (+9,000) and natural resources/mining (+8,000) sectors.
Job gains and losses by region and business size:
Job losses were steepest in the Midwest (-24,000), followed by the West (-20,000) and the Northeast (-3,000). The South region saw gains of 13,000 jobs.
Small businesses lost the most jobs, at 47,000, while employers with between 50 and 499 employees lost 15,000 jobs.
Employers with 500+ employees gained 30,000 jobs.
Annual pay increased 4.4% year-over-year:
For job-stayers, "year-over-year pay growth … was little changed for June at 4.4 percent compared to 4.5 percent in May."
For job-changers, year-over-year pay growth declined "slightly," from 7.0% in May to 6.8% in June.
Though layoffs continue to be rare, a hesitancy to hire and a reluctance to replace departing workers led to job losses last month. Still, the slowdown in hiring has yet to disrupt pay growth."
Read more via ADP, CNBC
Job openings "unexpectedly increased" in May, according to the Bureau of Labor Statistics' latest Job Openings and Labor Turnover Survey (JOLTS).
According to the JOLTS report, the number of job openings increased by 374,000 to 7.769 million in May, above economists' forecast of 7.30 million openings.
The rate of openings remained "little changed" at 4.6%.
Job openings increased in "accommodation and food services (+314,000) and in finance and insurance (+91,000)" while falling in federal government (-39,000).
Overall, the "number and rate of hires were little changed at 5.5 million and 3.4 percent, respectively."
Hires decreased in federal government (-11,000).
Quits, layoffs and discharges "changed little" in May:
Total separations came in "little changed" at 5.2 million in May, with the total separations rate "unchanged for the fifth month in a row" at 3.3%.
Quits numbered 3.3 million, while the rate of quits was "little changed" at 2.1%.
Layoffs and discharges were also “little changed.”
Revisions to April's JOLTS report:
Job openings for April were "revised up by 4,000 to 7.4 million," while hires were "revised up by 42,000 to 5.6 million," and separations were “revised up by 25,000 to 5.3 million.”
Read more via Bureau of Labor Statistics, Reuters
It was first launched as the Workplace Diversity Conference back in 1996. SHRM later rebranded it as SHRM Inclusion. This year, the conference is getting yet another rebranding, as SHRM Blueprint.
According to HR Dive, the conference's focus will remain the same and that the name change is "meant to respond to a challenging DEI landscape for employers."
SHRM told HR Dive the "decision to drop inclusion from the event’s title won’t be extended to its programming, which will feature content focused on inclusion."
The decision to rename the conference is part of SHRM's "efforts to ensure that I&D strategies are not just aspirational but also actionable, legally compliant, and aligned with business goals," according to a statement to HR Dive.
In 2024, SHRM "announced that it would drop equity from its DEI platform in favor of a more narrow focus on inclusion and diversity."
Read more via HR Dive, SHRM Blueprint
In February, the Trump administration issued a memo "warning America’s schools and colleges that they could lose federal money over “race-based preferences” in admissions, scholarships or any aspect of student life."
In March, the U.S. Department of Education announced it was investigating "more than 50" universities for "alleged racial discrimination."
In recent weeks, the administration has begun investigations and released reports about what it says are (or could potentially be) illegal practices at specific universities:
Last week, the Justice Department announced its investigation into hiring practices at the University of California. In a June 26 letter, the Justice Department's Civil Rights Division said the university "directs its campuses to hire “diverse” faculty members to meet race- and sex-based employment quotas" and that measuring "new hires by their race and sex … potentially runs afoul of federal law." A spokesperson for the university told The Washington Post the university is "committed to fair and lawful processes in all of our programs and activities, consistent with federal and state antidiscrimination laws."
The Trump administration's Task Force to Combat Anti-Semitism has found Harvard in "violent violation" of the Civil Rights Act, according to a letter sent to the university (and posted publicly) last week. The letter outlined the task force's findings, including the fact that the "majority of Jewish students reported experiencing negative bias or discrimination on campus" and that "Jewish and Israeli students were assaulted and spat on." The letter said Harvard failed to "defend all groups on campus equally" and said that Harvard must "institute adequate changes immediately" or face "the loss of all federal financial resources." Harvard said it "strongly disagrees with the government's findings."
A conservative think tank filed a civil rights complaint against Cornell University, alleging the university engaged in "discriminatory DEI practices in hiring." The complaint filed by the America First Policy Institute "alleges that Cornell placed “an illegal identity-based ideology above equal opportunity and merit” that discriminated against job candidates and created a hostile environment for people who disagreed with that ideology." A Justice Department official says the agency will "investigate all serious allegations of identity-based admissions, hiring, and student benefits" and commented that "Cornell is no exception to this rule." Cornell told The Wall Street Journal its "hiring policies focus on merit and prohibit discrimination." (The Wall Street Journal)
University of Virginia's president recently announced plans to resign. James Ryan was "facing heavy pressure" over the university's DEI practices and said he favored resignation to staying to “fight the federal government.” (Associated Press)
Multiple states have new laws that bar DEI at public universities:
Kentucky's new law barring public universities from "funding or requiring diversity, equity, and inclusion (DEI) initiatives" is now in effect. HB4 took effect June 30. Multiple institutions of higher education in the state began "dismantling DEI programs" even before the law was passed. Under the new law, public universities are required to "eliminate all DEI offices and positions" and schools are barred from "requiring students or staff to attend DEI training sessions." The state's public colleges and universities are also barred from taking into consideration "personal views on social or political issues" when it comes to decisions related to hiring and promoting faculty and staff.
Ohio's new "anti-DEI law" recently took effect. The Advance Ohio Higher Education Act "eliminates diversity, equity, and inclusion programs at public colleges and universities in Ohio." It also bars "faculty strikes" at the state's public colleges and universities and “mandates annual evaluations for all faculty members, including those with tenure.”
Six public university systems are working to form a new accrediting agency:
University systems in multiple states announced plans to form a new accrediting agency. The new accrediting agency, dubbed the "Commission for Public Higher Education," will be a joint effort by the State University System of Florida, the Texas A&M University System, the University System of Georgia, the University of North Carolina System, the University of South Carolina system and the University of Tennessee System. Florida Governor Ron DeSantis said the decision to launch the new accrediting agency comes as a result of the "diversity, equity and inclusion standards" of existing accreditors. DeSantis said the new accrediting agency will "concentrate on student achievement and measurable outcomes."
Secret recordings of university officials purport to show “covert” DEI efforts:
An anti-DEI organization claims it "secretly recorded" a college administrator purportedly explaining how to continue DEI work despite "multiple actions to stamp it out." Conservative group Accuracy in Media (AIM) released the video they claim shows a University of North Carolina employee suggesting there are "opportunities" to do "covert" DEI work at the institution. The employee in question is "no longer employed" by UNC, according to Inside Higher Ed. The video is just one in a series of similar videos being released by AIM that the organization says suggest DEI work is continuing in a "covert" manner regardless of what the university suggests publicly.
Read more via Associated Press, The Washington Post, Department of Justice, NBC News, Ed.gov, The Wall Street Journal, Associated Press, ABC 6, Courier Journal, Higher Ed Dive, Inside Higher Ed)
Germany: By 2027, Germany plans to "gradually raise its hourly minimum wage to 14.60 euros ($17.11)." The increase will occur incrementally "from the current 12.82 euros." (Reuters)
Japan: Industrial production "increased modestly in May," according to newly released government data. Experts say May's 0.5% increase in industrial production is "likely to be temporary due to the impact of U.S. tariffs and concerns over a global slowdown." Industrial production declined 1.1% in April. (The Wall Street Journal)
Poland: Poland has launched the country's first pilot of a "shortened working week." The four-day work week pilot began June 30 and is aimed at "offering flexible work options to improve employee wellbeing and address demographic challenges." Employers that are participating can "choose between reduced weekly hours, shorter workdays, or more paid leave." The pilot is expected to "run for several years, with full implementation targeted by November 2027." (Euronews, Economic Times)
