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Breaking Down June Jobs Numbers: Do Slowing Layoffs Signal A Recovery?

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Breaking Down June Jobs Numbers: Do Slowing Layoffs Signal A Recovery?

Job openings increased to 5.9 million on the last business day of June, while hires decreased to 6.7 million in June, the Bureau of Labor Statistics said Monday. 

What Happened: While both openings and hires decreased from May’s record-setting numbers, June's 6.7 million hires represent the second-highest number ever reported.

Total separations increased 4.8 million, with quit rates accounting for 1.4% of the separations. 

Why It’s Important: The midwest and northeast regions both saw job openings increase during June.

The industries with the largest number of job openings were accommodations and food services (198,000), other services (69,000) and arts, entertainment and recreation (34,000). Job openings decreased the most in construction and local government education.

The total number of layoffs was 1.9 million, with the largest increases occurring in accommodation and food services (70,000) and durable goods manufacturing (38,000).

June’s layoff rate is a reported 1.4%, down from the 7.6% record high reported in March. The layoff rate is coming close to the pre-pandemic 1.2% rate seen in February. 

From June 2019 to June 2020, 70.2 million hires were made with 79.1 million total separations, for a net year-over-year employment loss of around 9 million.

What’s Next: Layoffs are slowing, with job openings experiencing significant increases from record lows earlier this year.

Going forward, it will be important to see if this pattern continues and where these industry changes continue to occur.

Job Openings and Labor Turnover Survey estimates for July will be released on Wednesday, Sept. 9.

 

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