U.S. employment was surprisingly higher last month, though unemployment grew. Mortgage broker jobs continued to expand.
American employers added 287,000 non-farm jobs in the month of June, the Bureau of Labor Statistics reported on Friday.
Job growth exploded compared to the previous month, when nonfarm
payroll employment was up a downwardly revised 11,000.
More jobs were also added than in the same month last year, when an upwardly revised 228,000 jobs were added.
“The June jobs report will come as a sigh of relief,” National Association of Federal Credit Unions Chief Economist Curt Long said in a statement. “Despite a downward revision to the already weak May figure, the rebound in June means that the average monthly gain in 2016 exceeds 170,000, which is more than enough to absorb new entrants.”
Despite robust job growth, the unemployment rate ticked up to 4.9 percent from 4.7 percent in May but was down from 5.3 percent in June 2015.
However, the labor participation rate was stronger at 62.7 percent versus 62.6 percent a month earlier and year earlier.
“The participation rate also saw a mild bounce back after dropping in the previous two months,” NAFCU’s Long stated. “Meanwhile, wage growth remained subdued, but it continues to outpace inflation and is consistent with a tightening labor market.”
In the mortgage industry, non-bank mortgage employment totaled
301,500 in May. Mortgage jobs are reported on a one-month lag.
Employment in the home-lending sector expanded from a downwardly revised 301,000 in the prior month and an upwardly revised 291,300 a year prior.
Mortgage sector jobs included
220,200 employees classified as “real estate credit,” fewer than the 220,500 in April but more than the 213,000 in May 2015.
“Mortgage and nonmortgage loan brokers” accounted for another 81,300 positions in May 2016, increasing from 80,500 the previous month and 78,300 the same month in the previous year.
Using the BLS numbers and origination share data, Mortgage Daily estimates that total mortgage employment — including residential lending jobs at financial institutions — totaled approximately 631,100 in May 2016.
Estimated industry headcount expanded from 630,100 a month earlier and 618,800 a year earlier.
The May 2016 estimate was comprised of
271,100 mortgage jobs at banks, 58,500 real estate finance positions at credit unions and the 301,500 non-bank jobs reported by the BLS.
