The U.S. created a robust 850,000 new jobs in June, the biggest increase in 10 months, as the economy perked up and companies rushed to add more workers. Most of the new jobs came from service-oriented positions at restaurants, hotels, retailers, and such. However, the unemployment rate rose slightly to 5.9% from 5.8% mostly due to the increase in the labor participation rate. The paradox of what’s turned into a strong economic recovery is that unemployment is still quite high despite a record number of job openings. Still, the increase in private-sector hiring in June suggests companies are finding ways to attract or retain valued employees. Many have raised pay and benefits or offered other incentives such as bonuses.

The key takeaway is that although this was a strong jobs report, at the current pace of hiring it’s likely to take more than a year before employment returns to pre-Covid levels. There are plenty of job openings and more than enough people to fill them. However, the fear of the virus, caretaking responsibilities, and generous unemployment benefits are just some reasons Americans are reluctant to go return to work. The market responded well to the jobs report as equities opened finished higher.