June jobs report preview: Nonfarm payrolls increase, unemployment declines - Business Insider

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Economists expect the US added 3 million jobs and that the unemployment rate declined in June. Here's what to watch in Thursday's report.

A record amount of Americans are still out of a job, and unemployment benefits are set to expire on July 31.The June nonfarm payrolls report will be released Thursday, July 2, from the Labor Department.

, and that the unemployment rate declined to 12.5%. The report is due Thursday, instead of the usual first Friday of the month, because of the Independence Day holiday. by showing more jobs added and lower unemployment than expected. Amid the pandemic, participation rates in the report's surveys have been lower, and a classification error may be giving the unemployment rate a boost.

Economists will also be watching for how many people are permanently unemployed in June. One of the early encouraging signs in the pandemic was that many workers were temporarily unemployed, and could thus rejoin the labor force quickly, Ryan Sweet, an economist at Moody's, told Business Insider. In addition, industry breakdowns of jobs added and lost, the labor force employment rate, and employment-to-population ratio will be top of mind for economists to further understand how the labor market fared in June. The coronavirus pandemic has exacerbated inequality in the US as it's fallen hardest on women and minority workers, in many cases the most vulnerable to a recession.

 

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