June NFP: Is This Jump in Employment Numbers a Good Sign?

The June NFP report was stronger than expected, showing better results than what most economists estimated amid efforts to get the economy back to normal. 

According to the Bureau of Labor Statistics, the US added 4.8 million jobs, and the unemployment rate came in at 11.1%, which according to BLS, is lower than the 12.5% expected by economists. 

Is this a good sign?

Some might see it as a good sign of economic health and how fast it can bounce back. But some economists are expressing doubts, saying that this would be the best possible result in the near term.

As the government surveyed businesses in early June before the recent spike in coronavirus infections across the states, and the result of pausing reopening operations and heightened layoffs, we would expect plateauing over the next couple of months at best. Although we will have to wait for the July report to see the impact of the new cases on employment.

The June NFP report was stronger than expected, showing better results than what most economists estimated amid efforts to get the economy back to normal. 

According to the Bureau of Labor Statistics, the US added 4.8 million jobs, and the unemployment rate came in at 11.1%, which according to BLS, is lower than the 12.5% expected by economists. 

Is this a good sign?

Some might see it as a good sign of economic health and how fast it can bounce back. But some economists are expressing doubts, saying that this would be the best possible result in the near term.

As the government surveyed businesses in early June before the recent spike in coronavirus infections across the states, and the result of pausing reopening operations and heightened layoffs, we would expect plateauing over the next couple of months at best. Although we will have to wait for the July report to see the impact of the new cases on employment.