June jobs report surpasses expectations — but with a 'big asterisk'


This month's jobs report has once again surpassed economists' expectations, though there's an important caveat to keep in mind.
The Labor Department on Thursday said the U.S. economy added 4.8 million jobs in June, and the unemployment rate declined to 11.1 percent. Both of these numbers were significantly better than expected, as economists were anticipating about 2.9 million jobs to be added and for the unemployment rate to decline to about 12.4 percent, CNBC reports. This comes after last month, another better-than-expected jobs report saw the unemployment rate decline to 13.3 percent, with 2.5 million jobs added.
Still, The New York Times notes the latest unemployment survey was taken in mid-June, before states like Arizona and and Florida started to see a spike in new COVID-19 cases. These spikes have led some states to slow down their reopenings and close businesses, and the surge in cases "could hamper the labor market’s recovery," The Wall Street Journal writes. The Washington Post's Heather Long referred to this fact as a "big asterisk" to keep in mind when looking at the job gains.
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.

Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
At the same time on Thursday, the Labor Department also reported that another 1.42 million Americans filed initial unemployment claims last week, whereas economists were anticipating about 1.38 million claims, CNBC notes.
“We’re in the beginning of a slow recovery," University of Tennessee labor economist Marianne Wanamaker told the Journal. "I think the recovery will stall out if we don’t get control of the virus."
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
Brendan worked as a culture writer at The Week from 2018 to 2023, covering the entertainment industry, including film reviews, television recaps, awards season, the box office, major movie franchises and Hollywood gossip. He has written about film and television for outlets including Bloody Disgusting, Showbiz Cheat Sheet, Heavy and The Celebrity Cafe.
-
Jasveen Sangha and the ketamine 'Wild West' of Hollywood
In The Spotlight Arrest of the 'ketamine queen' accused of supplying Friends star Matthew Perry with deadly dose has turned spotlight on a showbiz drug problem
-
Confessions of a Brain Surgeon: an 'exceptional' documentary
The Week Recommends Retired neurosurgeon Henry Marsh reflects on his pioneering work with exquisitely 'raw honesty'
-
A new subtype of diabetes was found and it may require different treatment
Under the radar It is prevalent in Black Africans and Americans
-
Trump said to seek government stake in Intel
Speed Read The president and Intel CEO Lip-Bu Tan reportedly discussed the proposal at a recent meeting
-
US to take 15% cut of AI chip sales to China
Speed Read Nvidia and AMD will pay the Trump administration 15% of their revenue from selling artificial intelligence chips to China
-
NFL gets ESPN stake in deal with Disney
Speed Read The deal gives the NFL a 10% stake in Disney's ESPN sports empire and gives ESPN ownership of NFL Network
-
Samsung to make Tesla chips in $16.5B deal
Speed Read Tesla has signed a deal to get its next-generation chips from Samsung
-
FCC greenlights $8B Paramount-Skydance merger
Speed Read The Federal Communications Commission will allow Paramount to merge with the Hollywood studio Skydance
-
Tesla reports plummeting profits
Speed Read The company may soon face more problems with the expiration of federal electric vehicle tax credits
-
Dollar faces historic slump as stocks hit new high
Speed Read While stocks have recovered post-Trump tariffs, the dollar has weakened more than 10% this year
-
Economists fear US inflation data less reliable
speed read The Labor Department is collecting less data for its consumer price index due to staffing shortages