Payroll employment surged 222,000 in June on the heels of upward revisions to the last two months. A surge in government hiring added more than 35,000 to those increases. That is the largest increase in government payrolls since March 2016. Hiring was strongest at the local level where coffers are filling again.
In the private sector, gains were concentrated in the service sector. A jump in health care employment dominated that improvement. However, the pace of hiring in the health care sector has slowed in 2017 relative to 2016 with growing uncertainties surrounding the fate of health care coverage.
Hires in the food sector were robust, suggesting that automation may be slower to replace workers than some have expected.