Weekly economic review & outlook Hiring breaks out to the upside
You Need to Know
Week in review
Job gains jump as service sector reset continued in June
Nonfarm payrolls rose by 850,000 for June, the strongest month since last August, led by in-person focused industries and the return to office for some businesses.
Continued expansion for manufacturing even if a little weaker
The ISM manufacturing index edged down for June, still buoyed by strong new orders – although supply shortages remain a key concern for producers.
A further rise in service sector expansion expected during June
The ISM services index should climb to a record high in June, riding strong demand metrics from the reopening of in-person activities.
Lower jobless claims as job gains grow and extra benefits fade
Weekly initial jobless claims likely fell further during the week of July 3 in response to strong hiring and reduced unemployment benefits across more than 20 states.
Nonfarm payrolls jumped for June, rising by 850,000, as more sectors are returning to normal operating conditions this summer. Once again, the leisure and hospitality sector saw the strongest gains and added nearly one million workers during the second quarter (of the 1.7 million in total job gains). Other service sector industries, including retail, administrative support, and education services, also saw outsized hiring as more businesses returned to the office in June. The Bureau of Labor Statistics (BLS) also noted that there was a surge in local education employment as school systems prepare for in-person schooling in the fall.