PROTECTING SMALL BUSINESS, PROMOTING ENTREPRENEURSHIP

June Jobs Report: Solid Gains Sustain the Economy’s Positive Momentum

By at 6 July, 2018, 12:33 pm

NEWS

For Immediate Release

Washington, D.C. – Today, the U.S. Labor Department reported a solid increase of 213,000 new jobs along with a significant jump in the number of Americans who entered the labor force. This is a good sign for both the economy and businesses looking for employees, according to Small Business & Entrepreneurship Council (SBE Council) president & CEO Karen Kerrigan, as the shortage of workers is a top challenge for small businesses in the growing economy. The labor force participation rate increased to 62.9 percent, driven by 601,000 new entrants. The unemployment rate increased to 4.0 percent.

“There are more jobs available than workers actively seeking employment so this surge of new workers is very positive news. Small businesses are in need of quality human capital to scale their firms and take advantage of opportunities in the growing economy. We hope the surge of new labor-force entrants is the beginning of a needed trend,” said Kerrigan.

Kerrigan added:

“The job growth in June will serve to fuel confidence and momentum. As more capital investment kicks in, higher wage growth should materialize. Small businesses feel very optimistic about the future and many plan to increase wages and other benefits. The historic tax cuts package signed a mere 6 months ago is already impacting workers and small businesses in a positive way, and these benefits will accrue over time. The wild card to this positivity is the mounting trade disputes, which could undermine confidence and economic gains depending upon how scenarios play out and how long tariffs last.”

Read highlights of Kerrigan’s testimony before the U.S. House Financial Services Committee on June 20, which provides an overview on the outlook for small business spending for the remainder of 2018 and beyond (driven by the tax relief package), which includes plans for increasing wages and benefits, higher levels of investment, and more hiring.

The Labor Department also issued upward revisions for the months of April (from 159,000 to 175,000) and May (from 223,000 to 244,000), which means employment gains were 37,000 than originally reported. Jobs gains have averaged 211,000 over the past 3 months.  Education and health services (+54,000 with +25,000 in health care), professional and business services (+50,000) and manufacturing (+36,000) led the way in new employment growth.

CONTACT:  Karen Kerrigan, kkerrigan@sbecouncil.org

SBE Council is a nonpartisan, nonprofit advocacy, research and education organization that works to protect small business and promote entrepreneurship. For nearly 25 years SBE Council has worked to successfully implement a range of policy and private sector initiatives to strengthen the ecosystem for startups and small business growth. To learn more, visit SBE Council’s website: www.sbecouncil.org. Follow on Twitter: @SBECouncil

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