The U.S. unemployment rate is inching back down, making it to 11.1 percent in June with 4.8 million jobs added.
What does the latest jobs report mean for employers?
- Unemployment rate declined from 13.3% to 11.1%
- Unemployment rates by demographics: whites (10.1%), Asians (14.5), Blacks (15.4%), Hispanics/Latinos (14.5%)
- Temporary layoffs decreased from 15.3 million to 10.6 million
- Permanent job losers increased from 2.3 million to 2.9 million
- The number of people jobless 15 to 26 weeks and the long-term unemployed (those jobless for 27 weeks or more) saw over-the-month increases (+825,000 to 1.9 million and +227,000 to 1.4 million, respectively)
Workers remain without jobs
Immediate, dire situations seem to be tapering off and slowing down, with temporary layoffs decreasing by 4.7 million in June. This is twice the amount in May, which means more workers are holding on to their current roles and businesses aren't experiencing the same urgent need to furlough employees. The number of people who were jobless less than five weeks before the survey declined from 3.8 million in May to 2.8 million in June. And the number of unemployed re-entrants rose by 711,000 (to 2.4 million) - workers who were employed but were not in the labor force at the time they started their job hunt.
However, workers who have been jobless 5 to 14 weeks (so, 1 to 3 months) account for 65.2% of the total unemployed. This is still a decrease from May at 70.8%, but it means hiring has not fully ramped up and employees are still not back at their desks.
Your takeaway? There is still a large pool of talented people looking for work or waiting for furlough to end. Continue building your talent pipeline as economies recover bit-by-bit and until you can hire again.
Still focus on diversity and wages
The coronavirus pandemic hit pause on a competitive job market that required competitive wages and ultra-attractive job offers. Even if it might be tempting to offer lower salaries or packages now, your company will see higher turnover and less retention as more businesses start hiring and bringing back workers.
In addition to competing for top talent, now is the time to stay the course when it comes to diversity in hiring and addressing inequities. While overall unemployment rates are dropping per demographic group month-over-month, non-white workers are facing much higher rates than white workers. Here are three strategies to improve candidate sourcing and increase diverse applicants.
Industries on the rise
You might work in one of these industries and are seeing job growth, or maybe you’re looking for areas to place great candidates with comprehensive skillsets, these sectors experienced job gains in June.
- Employment in leisure and hospitality increased by 2.1 million
- Employment in retail trade rose by 740,000
- Education and health services employment increased by 568,000
- Manufacturing employment rose by 356,000