WASHINGTON, DC--The Labor Department has reported that US jobs rose by 287,000 last month and the unemployment rate ticked up to 4.9% as nearly half a million workers moved back into the labor force. It is a strong rebound from May's employment numbers, which were only 38,000 -- and in fact, were revised downward in this report to 11,000.

The striking Verizon workers were cited as an explanation for the May's dismal performance and indeed this month they were added back to the payrolls. Other drivers behind June's employment numbers included strong activity in state and local government hiring as well as in the hospitality and leisure, education and healthcare sectors.

“Today's employment report will allay fears that a recession is underway or imminent,” is Fannie Mae Chief Economist Doug Duncan's first read on the numbers.

He did note, though, that other components of the report were uninspiring. “The workweek was flat and the temporary worker hiring trend flattened,” he said. In addition, “there was nothing in the report to encourage housing supply enthusiasts,” such as an increase in construction employment.

“That is consistent with recent housing starts data and offers no near-term hope of housing supply growth to offset strong house price appreciation trends and related affordability constraints. Without supply growth, decreases in interest rates are translating into house price increases in the presence of employment and household formation growth.”

Of course, for apartment owners and investors this particular trend is a favorable one.

The Pace of Hiring is Slowing

But let's get back to the big picture. While, this month's numbers were a relief, they continue the trend of a slowing pace of job creation.

With this month's numbers, the three-month average rose from 115,000 to 147,000 in June. That is a marked drop from a near 300,000 pace at the end of 2015, Stifel Chief Economist Lindsey M. Piegza noted. The three-month average slowed to fewer than 200,000 in the first quarter before dropping to 150,000 as of late, she said.

“Thus, even the outsized nominal rise in June of 287,000, beating market expectations, is not enough to reestablish an improving trend in hiring,” she concluded.

“Today's employment report will allay fears that a recession is underway or imminent,” is Fannie Mae Chief Economist Doug Duncan's first read on the numbers.

Of course, for apartment owners and investors this particular trend is a favorable one.

The Pace of Hiring is Slowing

But let's get back to the big picture. While, this month's numbers were a relief, they continue the trend of a slowing pace of job creation.

“Thus, even the outsized nominal rise in June of 287,000, beating market expectations, is not enough to reestablish an improving trend in hiring,” she concluded.

Instant Insights /

US Labor Market Comes Roaring Back in June But Not Enough to Boost Hiring's Slowing Pace

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