According to a government report today, the nation’s unemployment rate fell in June even though hiring by the private sector remained soft. The much touted economic recovery is showing signs of slowing down which will have a dramatic affect on the nation’s economic outlook.
The jobless rate was 9.5 percent last month, down from 9.7 percent in May, a surprising decrease that came as hundreds of thousands of workers dropped out of the labor force. Private employers added 83,000 jobs in June, more than double the rate in May but still below the six-figure job creation numbers that would suggest a strong recovery in employment.
Overall, employers shed 125,000 jobs in June; however, that figure was distorted by the Census Bureau cutting 225,000 temporary jobs. The total of 100,000 jobs added, excluding the Census, is lower than the 130,000 or so jobs needed every month just to keep up with growth in the labor force, which could put upward pressure on the jobless rate in the months ahead.
Many economists were eagerly awaiting the jobs report for evidence of a weak economic news with the answer from June’s jobs report; The expansion that began last year has indeed lost momentum, but the numbers are not so bad as to suggest the nation is heading into a double dip recession.
The real question which is not in the job’s report is what will happen to the nation’s economy if the state’s don’t fix their dismal economies. One only has to look at California, Michigan, Illinois, New Jersey, and New York. Other states are also experiencing dismal economies and all will be a drain on the national economy.
Nobody should be excited at this report as the nation has a lot of work to do to get the economy moving again.
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