US road to recovery seen slow
Source: Agencies |
July 9, 2011, Saturday
|
Print Edition
Print Edition
HIRING slowed to a near-standstill last month in the United States. Employers added the fewest jobs in nine months and the unemployment rate rose to 9.2 percent.
The Labor Department said yesterday that the economy generated only 18,000 net jobs in June. And the number of jobs added in May was revised down to 25,000.
Businesses added the fewest jobs in more than a year. Governments cut 39,000 jobs. Over the past eight months, federal, state and local governments have cut a combined 238,000 positions.
The latest report offered evidence that the recovery will be painfully slow. Two years after the recession officially ended, companies are adding fewer workers despite record cash stockpiles and healthy profit margins.
Hiring has slowed sharply in the past two months, after the economy added an average of 215,000 jobs per month in the previous three months.
Economists have said that temporary factors have, in part, forced some employers to pull back. High gas prices have cut into consumer spending. And supply-chain disruptions stemming from the Japan crisis slowed US manufacturing production.
The economy typically needs to add 125,000 jobs per month just to keep up with population growth. And at least twice that many jobs are needed to bring down the unemployment rate.
The economy and job market are remarkably weak two years after the recession officially ended. Unemployment has topped 8 percent for 29 months, the longest streak since the 1930s.
Unemployment has never been so high for so long after a recession ended. At the same point after the previous three recessions, unemployment averaged just 6.8 percent.
Average hourly wages declined last month. After-tax incomes, adjusted for inflation, have been flat this year.
The average work week declined to 34.3 hours, from 34.4, which means employers demanded less work from their existing staffs.
And temporary employment fell 12,000. Businesses generally hire more temporary workers before taking on permanent ones.
The number of unemployed workers rose almost 175,000 to 14.1 million, pushing up the unemployment rate.
The Labor Department said yesterday that the economy generated only 18,000 net jobs in June. And the number of jobs added in May was revised down to 25,000.
Businesses added the fewest jobs in more than a year. Governments cut 39,000 jobs. Over the past eight months, federal, state and local governments have cut a combined 238,000 positions.
The latest report offered evidence that the recovery will be painfully slow. Two years after the recession officially ended, companies are adding fewer workers despite record cash stockpiles and healthy profit margins.
Hiring has slowed sharply in the past two months, after the economy added an average of 215,000 jobs per month in the previous three months.
Economists have said that temporary factors have, in part, forced some employers to pull back. High gas prices have cut into consumer spending. And supply-chain disruptions stemming from the Japan crisis slowed US manufacturing production.
The economy typically needs to add 125,000 jobs per month just to keep up with population growth. And at least twice that many jobs are needed to bring down the unemployment rate.
The economy and job market are remarkably weak two years after the recession officially ended. Unemployment has topped 8 percent for 29 months, the longest streak since the 1930s.
Unemployment has never been so high for so long after a recession ended. At the same point after the previous three recessions, unemployment averaged just 6.8 percent.
Average hourly wages declined last month. After-tax incomes, adjusted for inflation, have been flat this year.
The average work week declined to 34.3 hours, from 34.4, which means employers demanded less work from their existing staffs.
And temporary employment fell 12,000. Businesses generally hire more temporary workers before taking on permanent ones.
The number of unemployed workers rose almost 175,000 to 14.1 million, pushing up the unemployment rate.
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