The unemployment rate rose to 5.7 percent, and nonfarm payroll employment continued to trend down in July (-51,000), the Bureau of Labor Statistics of the U.S. Department of Labor reported today. Employment continued to fall in construction, manufacturing, and several service-providing industries, while health care and mining continued to add jobs. Average hourly earnings rose by 6 cents, or 0.3 percent, over the month.
Unemployment (Household Survey Data)
Both the number of unemployed persons (8.8 million) and the unemployment rate (5.7 percent) rose in July. Over the past 12 months, the number of unemployed persons has increased by 1.6 million, and the unemployment rate has risen by 1.0 percentage point. (See table A-1.)
Over the month, the unemployment rates for adult men (5.3 percent) and whites (5.1 percent) edged up while the rates for adult women (4.6 percent), blacks (9.7 percent), and Hispanics (7.4 percent) were little changed. The jobless rate for teenagers increased to 20.3 percent in July. The unemployment rate for Asians was 4.0 percent in July, not seasonally adjusted. (See tables A-1, A-2, and A-3.)
Among the unemployed, the number of reentrants to the labor force in July rose by 207,000 to 2.7 million. The number has increased by 623,000 over the past 12 months. The number of unemployed persons who had lost their last job was about unchanged over the month at 4.4 million, but has risen by 778,000 over the year. (See table A-8.)
Total Employment and the Labor Force (Household Survey Data)
The civilian labor force, at 154.6 million, was little changed in July, and the labor force participation rate remained at 66.1 percent. Total employment, at 145.8 million, was about the same as in June. The employment-population ratio, at 62.4 percent in July, was the same as in the prior month but was down from its most recent high of 63.4 percent in December 2006. (See table A-1.)
In July, the number of persons who worked part time for economic reasons rose by 308,000 to 5.7 million and has risen by 1.4 million over the past 12 months. This category includes persons who indicated that they would like to work full time but were working part time because their hours had been cut
back or they were unable to find full-time jobs. (See table A-5.)
Growth doubles to 1.9 percent from April to June; still, experts see sluggishness through year’s end –
The U. S. economy doubled its first-quarter rate of growth to 1.9 percent from April through June, the Commerce Department reported Thursday, and some signs emerged that the U. S. economy may have bottomed out.
A huge work force of the U.S. companies is now taking another brunt of the economic downturn, with their full time job being chopped to part time. The number of such hapless employees has already crossed 3.7 million mark, the largest figure in this regard since the government began tracking such data more than half a century ago, reported New York Times.
The shrinking paychecks that come with this job-time-conversion have been adding to the worries of the employees in the U.S. who are already reeling under the pressures of the downturn gripping the economy.
This work time (and paycheck) chopping is rendering the U.S. job market an apparently modest outlook. Layoffs are less frequent than in many slowdowns, while the unemployment rate is a relatively modest 5.5 percent. But that figure masks the strains of those who are losing hours or working part time because they cannot find full-time work.
WASHINGTON (Reuters) – The U.S. unemployment rate hit its highest level in four years during July as employers cut non-farm jobs for a seventh straight month, though less severely than predicted, a Labor Department report on Friday showed.
The jobless rate climbed to 5.7 percent from 5.5 percent in June as 51,000 jobs were eliminated in July, bringing losses for the year to 463,000. Analysts polled by Reuters had expected 75,000 jobs would be cut last month but had forecast the unemployment rate would rise only to 5.6 percent.
Rising exports and stimulus checks gave an anemic U.S. economy a shot in the arm last quarter. The question remains whether they’re having a measurable effect on employment.
The tax rebates the federal government granted in the spring also helped. However, they also feed the suspicion that the U.S. economy isn’t out of the woods yet. The stimulus effect will inevitably wane, leaving consumer spending at the mercy of still-high energy prices and a jobs market that has been undermined by the housing slump and credit crisis. A Labor Department report Thursday showed the number of U.S. workers filing new claims for unemployment benefits jumped to a five-year high last week.
S&P 500 futures rose 3.6 points to 1,270.30 and Nasdaq 100 futures rose 2.5 points to 1,856.50. Dow industrial futures rose 46 points.
U.S. stocks stumbled on Thursday, with a big rise in jobless claims taking the air out of the market. The Dow industrials fell 205 points, the Nasdaq Composite dropped 4 points and the S&P 500 lost 16 points. Nonfarm payrolls fell for the seventh straight month in July while the unemployment jumped to 5.7%, a four-year high, the Labor Department reported Friday.
Nonfarm payrolls fell by 51,000 in July, led by losses in manufacturing, construction, retail and temporary help. Since December, 463,000 jobs have been lost, the strongest signal that the economy is in a recession. Economists surveyed by MarketWatch expected payrolls to shrink by 70,000 and for the unemployment rate to rise to 5.6% from 5.5% in June.
However, reality on the ground appears to contradict the confusing headlines reported from financial news. The connection with joblessness and stock growth is disgusting. Job loss helps stock prices … that’s because companies are saving money by reducing their workforce. Outsourcing is always cheaper.
The jobs people are picking up are desperation jobs to put food in the mouths of their family. They loose their homes, cannot afford transportation and do not have the resources to get secure, reliable employment. Secure and reliable employment requires a place to eat, rest, clean up and change clothes. Life skills must have a home base. When real jobs are not available, how else do you feed your family? Desperation leads to “any way you can” attitude. The underground economy flourishes when times are bad. Illegal actions can put food on the table until you are caught. Robbery, extortion and drug sales will rise. When you give up, there’s always alcohol. Jails will fill with people who just want a meal. This is not the Great Depression yet. But, clueless politicians and fake statistics will fall apart when enough people hit the skids. These are no longer just poor farmers migrating to California. These are white collar workers who have adjusted their lives to a more flush style of living. Their urban survival mechanisms are not developed like the 1930s, when farmers families knew how to live off the land. They had no TV, Computers or Laptops. Today’s unemployed were assured their education was a guarantee of employment and a future for raising their families. Their mindset did not include washing dishes or mowing lawns as a means for survival. Standing in line at the unemployment office bashes their ego. When unemployment runs out, they fall off the unemployed list. They fall off the government statistics for many reasons. They take early, reduced benefit, retirement. They become disabled, mental meltdown is likely. They cannot relate to a lower standard of living. Adjustment is too cruel for some, so they end it all.
Unemployed will grab at anything to tread the stormy waters … they work off the books and get caught by the IRS two years later. They end up owing more than they will ever get to repay. This is what poor management of the United States of America has wrought. Government services cannot keep up supporting these NEW victims of our socio-economic earthquake. The Golden Goose, America’s middle class, is dying. As children, we were taught not to kill the golden goose …
How do displaced unemployed people vote? Are they going to be denied their rights because they no longer live in their district and cannot travel back to be counted? Any suggestions will be posted as a follow up.