American Economy Loses Jobs in June

July 2, 2010 ( – For the first time this year, the American economy lost jobs last month.


Nonfarm payrolls fell by a worse-than-expected 125,000 last month, as 225,000 of those temporary census workers lost those temporary jobs, according to the U.S. Labor Department said Friday.  The private sector added jobs, but only 83,000 – less than the 110,000 expected after an increase of 33,000 in May.

In May, nonfarm payrolls had surged by 433,000, boosted by the census hiring. The May figure was revised slightly from a previously reported 431,000 increase.

Both the number of unemployed persons (14.6 million) and the unemployment rate (9.5%), edged down in June, according to the Labor Department. 

Among the major worker groups, the unemployment rate for adult women (7.8%) declined, while the rates for adult men (9.9%), teenagers (25.7%), whites (8.6%), blacks (15.4%), and Hispanics (12.4%) showed little or no change. The jobless rate for Asians was 7.7%, not seasonally adjusted, according to the DoL.

In June, the number of long-term unemployed (those jobless for 27 weeks and over) was unchanged at 6.8 million. These individuals made up 45.5% of unemployed persons.

The number of persons employed part time for economic reasons (sometimes referred to as involuntary part-time workers), at 8.6 million, was little changed over the month but was down by 525,000 over the past 2 months.  The Labor Department notes that these individuals were working part time because their hours had been cut back or because they were unable to find a full-time job.

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, following 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. 

Average hourly earnings of all employees in the private nonfarm sector decreased by 2 cents, or 0.1%, to $22.53 in June. During the month, the average hourly earnings of private-sector production and nonsupervisory employees were unchanged at $19.00.

The change in total nonfarm payroll employment for April was revised from a gain of 290,000 to a gain of 313,000, and the change for May was also revised upward, from a gain of 431,000 to a gain of 433,000.