In recent months, the U.S. economy has been rebounding from the Covid-19 pandemic with an increasing number of new jobs. Now, a new report further indicates just how well the economy is recovering.
According to new data from the ADP Research Institute, private-sector employment increased by 692,000 from May to June. This follows a massive gain in May, where 886,000 new jobs were added. Despite the decline, the new numbers for June were well above the initial expectations.
In terms of changes by business size, large businesses, which are businesses that employ 500 or more people, gained 240,000 new employees. A midsized business which employs 50-499 employees saw an increase of 236,000 employees, and jobs in small business that employ 49 or fewer people rose by 216,000.
The bulk of the new jobs came from the service sector, which had 624,000 of the total new jobs added for the month. Over half of these came from leisure and hospitality jobs, with 332,000 being added in June. This sudden surge shows renewing confidence in tourism and travel coming back thanks to the extensive vaccination effort taken in the U.S. The only service sector field which saw a decline was information jobs, which lost 4,000.
As for the goods-producing sector, 68,000 new jobs were added. Construction had an increase of 47,000, followed by a 19,000 increase for manufacturing. Both of these gains follow a growing demand to resume projects postponed by Covid-19, and a need to meet rising consumer demand for products like automobiles. Mining and natural resources also saw a slight gain of 2,000 new jobs. Considering the growing efforts to shift to clean energy sources, along with the surplus of oil produced by the pandemic, these minor gains make sense when compared to the other fields.