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July 8, 2011

June Jobs Report: Unemployment At 9.2 Percent

Topics: Political News and commentaries

Unemployment.jpeg

As though we needed yet another reminder that Obamanomics is an economy killer (Compare the U.S. jobless rate to Australia's rate of 4.9 percent and Canada's rate of 7.4 percent).

The Department of Labor released a dismal June jobs report this morning showing that unemployment has risen to 9.2 percent, and not only was June a terrible month for jobs, but it turns out that May was even worse than previously announced. Hiring has essentially come to a screeching halt.

From the AP: "Unemployment rose to 9.2 percent as hiring stalls":

Hiring slowed to a near-standstill last month. U.S. employers added the fewest jobs in nine months and the unemployment rate rose to 9.2 percent.

The economy generated only 18,000 net jobs in June, the Labor Department said Friday. And the number of jobs added in May was revised down to 25,000.

The latest report offered stark evidence that the recovery will be painfully slow. It also raised doubts that the economy will rebound in the second half of the year after hitting a spring slump.

Businesses added just 57,000 jobs last month -- the fewest 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.

[...] "June's employment report doesn't have a single redeeming feature," said Paul Ashworth, an economist at Capital Economics. "It's awful from start to finish."

Two years after the recession officially ended, companies are adding fewer workers despite record cash stockpiles and healthy profit margins.

[...] The weak economy and slow hiring is causing more people to simply give up looking for work. More than a quarter-million people stopped their job searches in June. That kept the unemployment rate from rising even further. When laid-off workers stop looking for work, they are no longer counted as unemployed.

Read the whole thing.

Jeff Sessions & Paul Ryan weigh-in, reminding us that today's shocking jobs report represents a modern record of 29 straight months with unemployment above 8 percent, and falls on the 800th day since congressional Democrats have passed a budget.

This report is more proof that job creation in America is nowhere near where it needs to be for a strong recovery to occur, and that immediate action is needed to change course. Reports recently issued by the House Budget Committee and the minority staff of the Senate Budget Committee demonstrate that the federal government's dramatic overspending and enormous debt burden are directly hurting job creation. Employers large and small know that today's excessive borrowing will be tomorrow's tax hikes and interest-rate increases. This lack of confidence in the future puts a chilling effect on hiring and investment right now.

A study by University of Maryland economist Carmen Reinhart and Harvard's Kenneth Rogoff, endorsed by Treasury Secretary Geithner, shows that when a nation's debt-to-GDP ratio exceeds 90 percent, economic growth is reduced by one to two percentage points. The president's Council of Economic Advisers estimates that a one percentage point loss in economic growth translates into one million jobs. Today, the U.S. debt-to-GDP ratio is 95 percent, having crossed the dangerous 90 percent threshold months ago.

I should be asking, "Where are the jobs, Mr. President" ... but that would be a silly and wasted question since it's perfectly clear that Barack Obama has no clue as to why his leftist, anti-business agenda and policies have created such a dismal atmosphere for jobs.

Meanwhile, President Obama will speak about the latest jobs report at 10:35 a.m. EST, and as Doug Powers aptly suggests, be sure to take a Dramamine if you watch because the spin is most definitely going to be dizzying. He and his fellow Democrats still naively (and ideologically) believe that government creates jobs.

Related: Rea Hederman digs down way deep in the Jobs Report, looking for a silver lining.

Posted by Richard at July 8, 2011 9:49 AM



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