Job Market: June 2015

The Bureau of Labor Statistics has just released the Job Market June 2015 Report, available on their official website for public viewing. The report indicates some bolstering in the job market that, while heartening, isn’t nearly the kind of change experts wanted to see.

There’s been a major increase in jobs in the fields of health care, professional and business services and retail; these are all fields with a high turnover rate, but the increase in job opportunities offers greater security to current workers and job seekers nationwide. At first this increase seemed to explain the decrease in unemployment, which showed a 0.2 percent drop—that’s a heartening four fewer people unemployed per 100—but upon closer inspection of the report , this wasn’t the case.

While it’s true that the unemployment rate showed a marked decrease, from 5.5 to 5.3 percent of the working population, this is apparently not due to an increase in jobs, but rather a decrease in job-seekers. The unemployment rate isn’t measured by how many adults don’t have jobs, but according to how many individuals who have held a job in the past are current both not working and actively seeking gainful employment. With fewer people looking, there’s a drop in unemployment, but not the kind anyone wants to see. This also doesn’t count anyone who hasn’t held a job already, primarily teens and college students, who are struggling to make ends meet.

However, that doesn’t mean there hasn’t been growth. While Diane Swonk, chief economist at Mesirow Financial told CNBC that “liftoff” is still possible for September, she also emphatically declared, “We just hit another pot hole.” Something needs to get the economy moving more quickly.

There is one factor that could impact the global economy in a big way, but not positively—thankfully, experts say that there’s no need to fear. The financial crisis in Greece has shown no improvement whatsoever from last year, but economists don’t believe that there’s a risk of “spillover” to other countries, in or outside Europe. In fact, the slow improvement in the US economy could actually create the opposite effect, driving the central bank to make more direct decisions with regard to Greece’s situation, which could be just what the economic doctor ordered for Greek recovery.

It’s not all bleakness. The US job market seems self-contained these days, with a steady, albeit slow economic recovery in progress. An increase in open hourly jobs like retail and business services will no doubt help to alleviate the strain of unemployed workers all over the country. Retail may not be the strongest contender in moving the job market, but it’s definitely one of the biggest points for average men and women seeking something just to help get by. College graduates are also seeing an increase in hiring and job opportunities fresh out of college, bolstering the efforts of higher education to help drive the job market and create more worthwhile positions.

While job market growth has slowed down here in the States, as the market continues toward full recovery the impact could be felt globally. As non-farming jobs open up and wages continue to show minor increases throughout the year, things seem to be looking up. The key that many economists worry is missing from the population is patience; two steady months of major growth would change the world, but it just doesn’t look like the country is there just yet. Slow and steady, however, should still be more than enough to win this race.

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