A private jobs report from ADP last week estimated job growth in June far higher than the official numbers that were released on Friday by the Department of Labor.
The ADP Small Business Report, put out by Macroeconomic Advisers, LLC, had estimated on Thursday that the economy had added 157,000 jobs from May to June, but the Dept. of Labor’s Employment Situation Summary on Friday found only 18,000 additional jobs in June. The unemployment rate jumped again, to 9.2 percent.
The number of new jobs added each month is critical for lowering the unemployment rate. The economics blog Calculated Risk notes that in order to lower the unemployment to 8.2 percent — still very high, of course — we would have to add between 224,000 and 391,000 jobs every month for the next year, depending on population growth and whether the labor force participation rate remains steady.