The U.S. Labor Department’s July payrolls report  is expected to be one of the most important consensus reports  that economists are looking at this week. Nonfarm payrolls have increased by 900,000 in July which concludes the biggest monthly job gains since August 2020. This past June payrolls exceeded by 850,000. An improved unemployment rate dipping down to 5.7% from May’s high of 5.9%.

In the manufacturing ,which are indicators on the pace of the economy there are shortages in the service and manufacturing sectors. Bellwether companies such as Caterpillar (CAT claim higher compensation costs along with labor issues are affecting their business. Bank of America reported labor and wage inflation or 107% year over year.

Companies have been trying to increase incentives to get workers to return to work.

The Federal Reserve this past  Wednesday kept interest rates at near-zero but said    the U.S. economic recovery is getting closer where it may not need as much monetary support as we enter recovery form the COVID-19 pandemic.

THE EMPLOYMENT SITUATION — JUNE 2021 reported by the US Labor and Statistics report follows:

Total nonfarm payroll employment rose by 850,000 in June, and the unemployment

rate was little changed at 5.9 percent, the U.S. Bureau of Labor Statistics

reported today. Notable job gains occurred in leisure and hospitality, public

and private education, professional and business services, retail trade, and

other services.

This news release presents statistics from two monthly surveys. The household

survey measures labor force status, including unemployment, by demographic

characteristics. The establishment survey measures nonfarm employment, hours,

and earnings by industry. For more information about the concepts and statistical

methodology used in these two surveys, see the Technical Note.

Household Survey Data

Both the unemployment rate, at 5.9 percent, and the number of unemployed persons,

at 9.5 million, were little changed in June. These measures are down considerably

from their recent highs in April 2020 but remain well above their levels prior

to the coronavirus (COVID-19) pandemic (3.5 percent and 5.7 million, respectively,

in February 2020). (See table A-1. See the box note at the end of this news release

for more information about how the household survey and its measures were affected

by the coronavirus pandemic.)

Among the major worker groups, the unemployment rates for adult men (5.9 percent),

adult women (5.5 percent), teenagers (9.9 percent), Whites (5.2 percent), Blacks

(9.2 percent), Asians (5.8 percent), and Hispanics (7.4 percent) showed little

or no change in June. (See tables A-1, A-2, and A-3.)

Among the unemployed, the number of job leavers–that is, unemployed persons who

quit or voluntarily left their previous job and began looking for new employment–

increased by 164,000 to 942,000 in June. The number of persons on temporary layoff,

at 1.8 million, was unchanged over the month. This measure is down

from the high of 18.0 million in April 2020 but is 1.1 million above

the February 2020 level. The number of permanent job losers, at 3.2 million, was

also essentially unchanged over the month but is 1.9 million higher than in February
2020.