WASHINGTON — U.S. employers added only 80,000 jobs in June, a third straight month of weak hiring that shows the economy is still struggling three years after the recession ended.
The unemployment rate was unchanged at 8.2 percent, the Labor Department said in its report Friday.
The economy added an average of just 75,000 jobs a month in the April-June quarter. That's one-third of the 226,000 a month created in the first quarter.
For the first six months of the year, U.S. employers added an average of 150,000 jobs a month. That's fewer than the 161,000 a month for the first half of 2011. And it suggests that three years after the Great Recession officially ended, the job market is weakening instead of strengthening.
"It's a disappointing report," said George Mokrzan, director of economics at Huntington National Bank in Columbus, Ohio. He said the job gains are consistent with sluggish economic growth.
Stock futures fell modestly after the report came out. Dow Jones industrial average futures were down 24 points before the report at 8:30 a.m., and were down 76 points minutes later.
Yields for government bonds sank, an indication that investors were putting money into the Treasury market. The yield on the 10-year U.S. Treasury note was 1.59 percent just before the report and 1.56 percent after it came out.
A weaker job market has made consumers less confident. They have pulled back on spending, even though gas prices have plunged.
High unemployment could shift momentum to Mitt Romney, the presumptive GOP presidential nominee. An Associated Press-GfK poll released last month found that more than half of those surveyed disapproved of President Barack Obama's handling of the economy.
The economy is growing too slowly to lower the unemployment rate. Obama is expected to face voters with the highest unemployment rate of any president since the Great Depression, and the economy is the top issue for many voters.
Dismal June job figures could also prompt the Federal Reserve to take further action to try to boost the economy. The Fed last month downgraded its economic outlook for 2012. It predicted growth of just 1.9 percent to 2.4 percent. And it doesn't expect the unemployment rate to fall much further this year.
Revisions to the job gains in April and May were little changed from the government's previous estimates.
There were some good signs in the report. The average work week grew to 34.5 hours from 34.4 in May, boosting many workers' paychecks. And average hourly pay rose 6 cents to $23.50. Hourly pay has increased 2 percent in the past year and is ahead of inflation, which has fallen in recent months along with gas prices.
About one-third of the jobs gained in June were in temporary services. Manufacturing added 11,000, its ninth straight month of gains.
But growth in factory jobs slowed sharply in the second quarter compared to the first. Health care added 13,000 jobs and financial services gained 5,000. Retailers, transportation firms and government cut jobs.
Posted earlier:
U.S. hiring likely improved only modestly in June
WASHINGTON — Hiring likely picked up slightly in June after sputtering in April and May. But the gains aren't expected to be enough to lower the unemployment rate.
Analysts forecast that the economy gained only 90,000 jobs last month, according to a survey by FactSet. It would mark a third straight month of weak job growth. The unemployment rate is expected to remain at 8.2 percent.
The Labor Department will report on June hiring and unemployment at 8:30 a.m. Eastern time Friday.
Some economists grew more optimistic on Thursday after a pair of reports signaled improvement in the job market last month. The government said fewer people applied for unemployment benefits for the second straight week. And payroll provider ADP said businesses added 176,000 jobs last month, up from its reported gain of 136,000 jobs in May.
Goldman Sachs responded to the better data by raising its forecast to a gain of 125,000 jobs last month, up from its initial prediction of 75,000.
Still, the economy and the job market remain lackluster. Even a gain of 125,000 jobs is only enough, over time, to keep up with population growth and prevent the unemployment rate from rising.
In April and May, employers added an average of just 73,000 jobs. That was far fewer than the 226,000 a month added in the first three months of the year. And it's far too low to reduce the unemployment rate.
Another weak month of hiring could benefit Mitt Romney, the presumptive GOP presidential nominee. President Barack Obama is expected to face voters with the highest unemployment rate of any president since the Great Depression, and the economy is the top issue for many voters.
Dismal June job figures could also prompt the Federal Reserve to take further action to try to boost the economy. The Fed last month downgraded its economic outlook for 2012. It predicted growth of just 1.9 percent to 2.4 percent for the year and little change in the unemployment rate.
Despite the gloom, American factories and service firms kept hiring in June, according to surveys by the Institute for Supply Management. Economists say that suggests many companies don't think the slowdown in hiring this spring will endure.
"It is beginning to look like the labor market is not nearly as weak as feared," Joel Naroff, chief economist at Naroff Economic Advisors, said in a note to clients.
Hiring is crucial to consumers, who are losing confidence in the economy and whose pay is scarcely rising. They have pulled back on spending in the past two months, even though gas prices have fallen roughly 60 cents a gallon, on average, since early April. Consumer spending drives about 70 percent of the economic activity.
And Europe's debt crisis threatened to hold back U.S. growth further. Exports to Europe have fallen in recent months, hurting U.S. manufacturing, a key source of growth since the recession officially ended three years ago. In June, manufacturing shrank for the first time in nearly three years, according to ISM.
The European Central Bank cut its key interest rate by a quarter-point to a record low 0.75 percent Thursday in an effort to boost Europe's flagging economy. The central bank also cut the rate it pays to commercial banks on overnight deposits to zero. That is intended to push banks to lend more rather than hold reserves at the ECB.
In addition, Mario Draghi, president of the ECB, said the economy in the 17 nations that use the euro would recover only gradually and the risks "continue to be on the downside." He also suggested the interest rate cut would only have a limited impact on the economy.
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Comments » 132
newzhound (Inactive) writes:
80000 for June; no significant improved revisions in April and May.
apparently private sector is not doing fine...
Obama_Killed_the_Twinkie writes:
Improved? What an economist you must be. Just stop talking until you educate yourself.
Gifted1 writes:
If the GOP had it's way, Sarah Palin would be our VP right now. Mitt is now faced with selecting the most qualified candidate. Wonder what Jessica Simpson has on her plate?
AmericasTrueRecoveryBeginsIn2016 writes:
No sitting president since World War II has been re-elected when the unemployment rate on election day is 8.1% or higher.
The current range of predictions from several different sources for the unemployment rate on November 6th places it somewhere between 7.9% and 8.4%.
Stay tuned.
AmericasTrueRecoveryBeginsIn2016 writes:
(This comment was removed by the site staff.)
Gifted1 writes:
Your opinions have become moot. I mean come on your really defending that decision for VP? Or deflecting due to embarrassment?
AmericasTrueRecoveryBeginsIn2016 writes:
Neither one, actually.
Just commenting on your snide remark.
I know it's difficult for someone as blinded by their political ideology as you appear to be to make reasoned or informed argument, so I won't ask you to.
Gifted1 writes:
My post asked a question pertaining to the upcoming schedule of Jessica Simpson as it pertains to possibly being courted for the VP of America. Your reply to my question was a deflection and an admission that my snarkiness has merit.
Oh, and in broad strokes, my political idealogy is that the entire system is corrupt, and I will never vote for any candidate unless I support their record wholly by principle, not by party. Across the board lazy voters has ruined the spirit of free elections.
straighttalkinnaples writes:
Obamanomics has now delivered 3 consecutive months of stagnant job numbers, unemployment remains at 8.2 percent, factory orders are down and any hiring is primarily done on a part time basis.
The President's rhetoric yesterday claiming things are getting better just doesn't measure up to reality. Who do we believe, him or our lying eyes?
Time to invest in cheap and readily available domestic energy resources (oil, gas, coal) that actually delivers on our power requirements for the future, while generating over a million fulltime jobs across the nation.
Many say November can't come soon enough, but that means we'll have to suffer four more months of dismal economic news with a President focused on growing government, spending ineffectively on alternative energy, and demanding higher taxes.
CoolridenJoe (Inactive) writes:
(This comment was removed by the site staff.)
Ruger writes:
It has become quite obvious that this administration has no idea of what they are doing, except expanding the federal government even more. Remember 'Recovery Summer' where they promised 500,000 jobs a month?
http://voices.washingtonpost.com/44/2...
Vice President Biden predicted Friday at a Pennsylvania fundraiser that the U.S. economy would be adding up to 500,000 jobs each month
Adonis writes:
We need 150000 jobs per month just to keep with the new workforce joining the work market.
80000 jobs created means we lost 70000 jobs...
Obama's economy working very well...
gl1800 writes:
Hey guys over 1,500,000 new jobs need to be created per year just to keep up with the population increase. That is 125,000 new jobs per month. So if we only create 80,000 jobs per month we will have a short fall of 540,000 jobs per year. That’s the facts and no matter how much you care to spin it this administration has fallen way short of creating the required jobs. Also when do we stop blaming Bush for these administrations failures? We had a worse economy under Carter and when Reagan took over he did not blame Carter. The same with Clinton. Both Reagan & Clinton did what was needed to get the job done and did not spend all of their time blaming someone else. They compromised with the opposing political party and our economy flourished under their leadership. They did not pit rich against poor, union against non union, woman against men. The same can not be said about this president.
lb5361 writes:
This is one sick game Boehner,Cantor and McTurtle are playing in Congress now isn't it? They take more recesses than any congress in history and refuse to compromise on any legislation that would put laid off workers back to work. Then relentlessly blame the President. All the while acting like they care about the average American, keeping their fingers crossed behind their backs that unemployment numbers stay high right up to the election.
Just imagine what the unemployment rate would be if the President had taken Mitt's plan and let the auto industry go bankrupt.
Yep. One sick game the GOP are playing. To them it is not about people, but power and $$$.
God bless America indeed!
Shark88 writes:
(This comment was removed by the site staff.)
rags123 writes:
Call Romney and Scott and ask them to bring their outsourced jobs back from Communist China and Viet Nam.
Appears that "lets get back to work" didn't mean in the US.
Gifted1 writes:
.......and just think how much worse it would be if Sarah Palin was VP. I think Mitt is interviewing Jessica Simpson later today and Snooki Tuesday.
Carrot_Stick writes:
The GOP is still scrambling for a platform. Is the economy improving or not (Romney ask republican governors to stop praising job gains). Romney and the GOP are not sure if they should call Obamacare a tax or not. Do we build a wall or not....what about the hispanic vote. Should I pick a female VP....what about the female vote.
The GOP is running scared and unfortunately are making up lies along the way.
Never trust a republican.
FORWARD....Obama 2012!!!!
I do love reading comments by dumb and scared republicans!
Gifted1 writes:
and Sarah Palin slithered back to Alaska to resign and do a reality show.....Do you not understand it is both parties? I will never stand behind a party because it is the lesser of two evils
IMSufrin (Inactive) writes:
"U.S. employers added only 80,000 jobs in June, a third straight month of weak hiring that shows the economy is still struggling three years after the recession ended."
You know, I think that statement right there sums up what I find so angering about this. Who the effe decided that the recession ENDED??? Does it feel like it's ended? I think I speak for many that it's still on, baby!
You mean, the last three years have NOT been a recession? Could've fooled me.
bcnaples writes:
This is garbage the liberal media spins to make uneducated people think everything's gravy in America and that the Economy and the Socialist/ Progressive President is doing this country any good. The recession is not over; banks, wall street and the financial system are in disarray thanks largely to Congress' inability to get Bills through the Senate and on to the President to sign or veto. Meanwhile, the only growing in America is government employment, entitlement programs and our $16 trillion in debt. Obama's no messiah, and we sure could use one.
God save the Republic from it's politicians, socialist unions and those who think someone else should be providing anything for them. Jobs, healthcare, insurance, food, housing, cars, etc... - are not God given rights or entitlements.
bcnaples writes:
“14.9 percent” -- The percent of Americans unable to find work, forced to take part-time work or who have given up looking work in the month of June, according to the Bureau of Labor Statistics.
cozyboy writes:
Just wait till the UN_AFFORDABLE HEALTH CARE ACT or Omama Tax goes into effect in 2014. Talk about less hiring.
Gifted1 writes:
Politics and religion:
The last stop for people circling the drain.
romneygate writes:
Right, but a lot better than when Bush was "giving the store away" to his supporters. (1%)
romneygate writes:
Right! A little more "austerity" and reduction of public sector jobs would have been "just what the doctor ordered" right? Pick up your Nobel prize ASAP!
TSOL writes:
(This comment was removed by the site staff.)
Gifted1 writes:
You mean Mitt? I hear once Sarah Palin is reinterviewed for VP, then he is off to see Jessica Simpson then Snooki...LOL
straighttalkinnaples writes:
Better for the GOP to scramble for a platform that actually works, than to consistently indulge in fantasy recovery plans, ridiculous sloganeering, and active blame games to distract Americans from an economic reality Obama routinely denies much less acknowledges.
It's not just the GOP running scared from President Obama's economic whimsy, but the entire country...and we're more than concerned about this Amateur in the White House.
bcnaples writes:
How does a President "give the store away"? The Congress, is this Republic, is the only branch of government empowered to appropriate funding.
This President doesn't believe in, nor uphold or defend, The Constitution. By writing Executive Orders he has anointed himself chief spender and King.
romneygate writes:
What are you putting in that TEA? "growing government"? That's your definition for curbing Wall Street excesses and health insurance provider "extortion". That plays well into your conservative rhetoric but denies the root causes for the economic malaise created by policies instituted from 2000 to 2008. "Cheap energy"? You mean like the oil cartel and coal magnates are prepared to provide consumers, right? You really do live in a dreamland. In the meantime, Republican legislators can continue to stall and derail any programs to create jobs with infrastructure projects etc. under the guise of "SPENDING". American doesn't need any of your "snake oil" solutions! What's this Patient Center Reform the "boys" have created as an alternative to the Health Act?
romneygate writes:
Sure. Cut more spending and give the rich more tax cuts. They will make up the "difference", right?
Gifted1 writes:
Romney Friday to do list:
Degrease hair
Interview J Woww for VP
Learn to speak with us, rather than to us
Sit in passenger seat of really big jet
Try to go see Mike the male stripper movie without anyone knowing
romneygate writes:
Right. Things would be much better if people couldn't get health insurance and those taxpayers could pay for their burials, right?
romneygate writes:
Hey, maybe global warming isn't happening. Instead it's an ice age frozen in ignorance.
romneygate writes:
Thank you. Your "assessment" of who is at fault explains the Obama dilemma with a Republican CONGRESS including a 60 vote filibuster senate. Why didn't you explain that to your fellow tea party fanatics sooner?
w
cozyboy writes:
no you clown, things would be better if people were working, and unemployment went down.
newzhound (Inactive) writes:
Don't focus on current news; keep up the 'better than this one/worse than that one' nonsense. No wonder politician are able to feed voters nonsense and get their votes.
85,000 people went on federal disability in June---more than those that found employment.
It's time to wake up and stop throwing insults; no matter where your political allegiance is - this is a problem and a policy issue.
romneygate writes:
Tsk, tsk. Such language from an erudite expert.
romneygate writes:
Right, but you can't do that with money from off shore bank accounts in The Cayman Islands and Switzerland.
donkeydrone writes:
Compromise? Really? They are trying to stop the country from failing even more. I don't agree with their policies but they are a heck of a lot better than the ones we have now and what the idiots in the white house want.
cozyboy writes:
Why not elephantamer?
Quietcat writes:
Good post. And don't forget all the people now collecting SSDI because they can't find work and have now become a permanent drain on the system.
Carrot_Stick writes:
Make sure you moron republicans continue to complain about the economy while you are shopping in wal-mart with your cart full of cheap plastic crap made in China.
Obama has done a lot and made some difficult decisions that ensured the economy did not get even worse than it did today. At least he did something, as opposed to the party of no that has tried blocking every legislation that has come through....including many pieces that were originally developed by republicans.
Why don't you idiots buy American Made products and support American job creation? Why don't you start shopping at local markets to support local agriculture. Instead of buying a peach from California in Publix, go to a local market and buy a better tasting peach from Georgia for half the price!
Several of you that have previously commented need to learn the definition of a recession. Yes, the recession is ended because our current situation does not fit the definition of a recession. Educate yourself..idiot America...idiot republicans!
Quietcat writes:
What exactly has this administration done to improve your life and what is the agenda should they win again? I hear lots of platitudes and scant info on what the plan is going forward from the Obama team.
gentleIbis writes:
the gop needs to take a big slice of the responsibility for bad jobs numbers. their insistence on cutting jobs has added to the unemployment problems and their sheltering of tax breaks for businesses that encourage them to create jobs overseas hurts American labor.
Cutting jobs for teachers creates unemployed workers, allowing corporations to deduct payments to foreign governments from their US taxes discourages investment in America and encouraging non-investment by promising the investor class that they will not have to pay taxes if their candidate gets elected hurts US workers.
Blocking the health care act delayed the investment of 4.5 billion dollars by the insurance companies in the US economy. those are jobs that the insurance and heath care industry put off investing because of the gop law suits.
the gop strategy of working to delay or deny rulings and actions that are slowing growth in the US and then blaming the dems for all of it is simply deceitful.
there is nothing the the republican platform that helps anyone but the corporations and the 1%, who are trying as hard as they can to damage working class and buy the election.
straighttalkinnaples writes:
Romneygate,
Like most readers, I'm having great difficulty discerning any cogent train of thought, much less success in deciphering the tortured patchwork of unrelated phrases you use to argue your points.
Any chance you could ask an adult to proofread your responses prior to sending them?
romneygate writes:
What has Obama done to improve lives? Hmmmm. Let's see now. Our boys and girls aren't dying in Iraq anymore to placate a man's revenge. We don't have to worry about Osama bin ladin and many of his cadre anymore. We aren't losing 750,000 jobs a month anymore. Prejudice and bigotry have taken a beating and their proponents have had to identify themselves. Health care is less discriminating and affordable now. America is viewed as a land of opportunity and still the best place to live on earth. (Except if you have enough money to enjoy the Cote de Azur, Cayman Islands or Switzerland. Bermuda isn't too bad either. The list goes on......
romneygate writes:
Isn't that special? You defer with simplistic remarks. I'm surprised you haven't used the party's standard response of saying they are merely "talking points". Your ilk is amazing as to their penchant for the ridiculous!
POC writes:
The choices sure haven't changed in 4 years. It's too bad because I don't like Obama. Please, please, Mr. Romney tell me how you would do things vastly different than what the Bushes did.
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