Unemployment Rate Drops to 6.1 Percent

With 288,000 new jobs created, June is the fifth straight month to show an increase in hiring.
4:46 | 07/03/14

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Transcript for Unemployment Rate Drops to 6.1 Percent
Okay. It's Thursday July 3 the New York markets are open for sure day of business before the holiday weekend. And today's big number six point 1%. That's the -- its US unemployment rate down from six point 3% after the economy created 288000. New jobs in June. The fifth straight month of job creation hello everyone I'm Michelle Franzen in New York. Here with all the details ABC news business correspondent Richard Davies. Good morning Richard. Give us an idea what we need to know about these unemployment. Good morning Michelle the numbers are really pretty good right across the board in fact this report from the Labor Department came in. Better than expected you mentioned 288000. New jobs. Added by the US economy last month. That's quite a bit more than had been expected and certainly one of the strongest monthly jobs reports in quite awhile. Now -- the Labor Department also revised the April and may figures and it looks like these figures were headed in the right direction as well out it was -- give us an idea how that played out. -- let me give you one example in May there were 224000. New jobs created compared to the original estimate of 2171000. So that's an improvement and then you dig deeper into these numbers you know the average monthly. Jobs had added was 230000. Before this year so far compare that with last year. When it was a 194000. So we really are seeing things moving in the right direction we're seeing you jobs being added in health care. In business services and these jobs and this is interesting are better paid middle class jobs. We're still getting more low paid jobs in the restaurant and retail sector. But now we're seeing a broadening out of that job improvement and that too is encouraging. So -- shift in the type of jobs that people are taking. Also out this morning Richard I want to ask you and that's the sort of on the flip side the Labor Department figures on the number of Americans filing for unemployment. And even though those are alphabet the news is also -- there to do. Yet we have to be aware of the weekly numbers the weekly rise was up to 2151000. But those weekly numbers bounce around a -- -- a lot. If you take an average we're seeing that the number of layoffs is down considerably down by about 9% this year. Compared -- of last year so on the one hand we're seeing more new jobs being created by the economy. In this latest monthly employment number. And then the weekly unemployment are laid off numbers are showing that fewer people are losing their jobs so there's more job security. And more jobs being added but I will say one thing that's just a little bit negative. And that is we've seen no real improvement in the workforce participation rate. This is the percentage of Americans overall who were working so while the jobs market is now. Helping out those people newly entering the jobs market. We've seen a lot of discouraged workers in recent years. Leave the labor market and that's a problem that still has to be fully addressed so we're seeing a labor market that's maybe. A little bit more than halfway back. From what we'd really like to see which is full employment. So Richard let's take a step back we've got all these figures floating around some good news tempered with some other figures that we don't know how are going to play out yet. What's a wider picture on the overall state of the American economy. The stock market surging unemployment is trending downward if you -- gate going to give this a grade during the mid term -- this year -- together. I'd give it really -- C -- C plus and the reason is that while we've seen businesses. Doing much better now. Then was the case during that the recession and Wall Street bouncing back in a big way and 401K plans for savers doing well. We've seen real flat lining of living -- -- even perhaps a slight decrease. Compared to ten years ago so the American jobs market the American economy. Is still facing enormous headwinds from the impact of globalization and technology. Hopefully -- work these things through but the economy is not fully back yet. Richard Davies. Thank you for joining -- and a happy early fourth to you. You can't of course keep up with the latest headlines right here on abcnews.com. You've been watching the big number I'm Michelle Franzen in New York.

This transcript has been automatically generated and may not be 100% accurate.

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