Nonfarm payrolls add just 18,000 jobs in June, unemployment rises to 9.2%

Nonfarm payroll employment inched higher in June, coming in well below analysts’ lowered estimates, and the nation’s unemployment level rose slightly to 9.2%. The Labor Department’s Bureau of Labor Statistics said the economy added just 18,000 jobs last month as employment in most major private-sector industries saw little change and government jobs declined. The consensus figure from an Econoday survey forecast 105,000 new jobs for June with a range of estimates between 65,000 and 160,000. On Friday, the Labor Department revised gains for May down to 25,000 from 54,000 and April’s increase was lowered to 217,000 from 232,000. For the first three months of the year, the economy averaged monthly new nonfarm payroll gains of 220,000. Construction employment remained unchanged in June and has moved little since early 2010, following sharp declines the prior three years. Manufacturing jobs also experienced limited change last month. After adding 164,000 jobs between November and April, employment in the sector has been flat for two months, according to the Labor Department. Federal and local government’s continue to shed jobs, with another 39,000 cuts in June after 48,000 pink slips in May. Government jobs have declined consistently since the second half of 2008, according to Labor Department data. The number of unemployed Americans rose to 14.1 million in June, up from 13.9 million the prior month. “June’s U.S. employment report doesn’t have a single redeeming feature. It’s awful from start to finish,” said Paul Ashworth, chief U.S. economist at Capital Economics. Write to Jason Philyaw. Follow him on Twitter @jrphilyaw.