NEW YORK ( TheStreet) -- While banks and insurance carriers saw shrinking employment during June, overall numbers for finance-related employment increased.
According to the U.S. Labor Department's June unemployment report, companies in the "financial activities" category added 5,000 jobs during the month, to 7.7 million, after adding 9,000 jobs the previous month, on a seasonally adjusted basis. The sector added 57,000 full-time positions from June 2011.
On an unadjusted basis, total employment in the financial activities sector grew by 62,000 during June, to 7.8 million, following an increase of 29,000 positions in May. Unadjusted sector employment was up by 60,000 full-time positions from a year earlier.
As the economy continues to move through the later stages of the credit crisis, the largest seasonally adjusted increase within financial activities was among companies providing credit remediation and related services, which added 4,700 positions during June. There were also 3,700 full-time jobs created in the "securities, commodity contracts and investments" category, and while there were 2,600 real estate jobs added, there was a decline of 2,800 positions in the "in rental and leasing services" category.On a seasonally adjusted basis, commercial banks saw employment rolls shrink by 2,900 during June, following a decline of 1,800 in May, while growing by 1,500 positions year-over-year, to 1.3 million. On an unadjusted basis, commercial bank employment increased by 1,400 positions during June, following a decline of 2,300 in May. Total unadjusted commercial bank payrolls grew by 1,400 positions from a year earlier, to 1.3 million. Considering the pace of industry consolidation and the efforts of many large banks to trim expenses -- and payrolls -- as they struggle to maintain healthy profits while interest spreads narrow, the commercial bank employment numbers have held up well over the past year. The Federal Deposit Insurance Corp. reported that the number of banks and savings and loan associations in the U.S. declined to 7,307 as of March 31, from 7,357 the previous quarter and 7,574 a year earlier. The 3.5% year-over-year decline in the number of institutions included 82 bank and thrift failures and 185 institutions disappearing through mergers. Many of the largest U.S. banks are going through long-term efforts to trim expenses and right-size their staffs, amid the weak environment for investment banking and trading revenue, and the continued narrowing of net interest margins, as short-term rates remain near zero and long-term rates decline. Bank of America (BAC) is in the midst of a multi-year cost-cutting and efficiency improvement program called "Project New BAC." The company reported having 279,000 full-time equivalent employees as of March 31, declining from 282,000 at the end of 2011 and 288,000 in March 2011. Insurance carriers saw total payrolls declined by a seasonally adjusted 3,500 positions during June, following an increase of 2,500 the previous month. Total employment by insurance carriers grew by 200 year-over-year to 2.3 million in June, on a seasonally adjusted basis.
Email. Follow @PhilipvanDoorn
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV