CNN - 5.6% Unemployment is 'low' (1996), 5.6% Unemlpoyment is high (Today)
CNN ^
Posted on 02/27/2004 10:01:49 PM EST by Phisher
July 5, 1996 Web posted at: 5:50 p.m. EDT
WASHINGTON (CNN) -- Economists didn't expect June's unemployment rate to be much different from May's, which was an already-low 5.6 percent. But in fact, it did fall -- to 5.3 percent. The unemployment rate hasn't been that low since June 1990.
The Labor Department said Friday that businesses added 239,000 workers to their payrolls during June. The vast majority of the jobs added were in the service industry, including restaurants, bars, and agencies that place temporary workers.
Analysts said preparations for the Summer Olympics in Atlanta also helped boost the total.
Even the average wage rose for June, up 9 cents to $11.82 an hour. It was the biggest one-month wage increase on record, and indicates that not only are more people working, but they are being paid more for their work.
Economists noted that the boost in average hourly earnings, a key indicator of wage pressures, jumped 0.8 percent, the biggest monthly increase on record.
In January, analysts were concerned that growth was so anemic that the nation was in danger of a recession. But five straight months of strong job gains now have analysts worried more about inflation.