Posted on 07/02/2009 7:37:07 AM PDT by SeekAndFind
WASHINGTON – Employers cut a larger-than-expected 467,000 jobs in June, driving the unemployment rate up to a 26-year high of 9.5 percent, suggesting that the economy's road to recovery will be bumpy.
The Labor Department report, released Thursday, showed that even as the recession flashes signs of easing, companies likely will want to keep a lid on costs and be wary of hiring until they feel certain the economy is on solid ground.
June's payroll reductions were deeper than the 363,000 that economists expected and average weekly earnings dropped to the lowest level in nearly a year.
However, the rise in the unemployment rate from 9.4 percent in May wasn't as sharp as the expected 9.6 percent. Still, many economists predict the jobless rate will hit 10 percent this year, and keep rising into next year, before falling back.
All told, 14.7 million people were unemployed in June.
If laid-off workers who have given up looking for new jobs or have settled for part-time work are included, the unemployment rate would have been 16.5 percent in June, the highest on records dating to 1994.
"We were on the road of things getting less bad in the jobs market, and that has been temporarily waylaid," said economist Ken Mayland, president of ClearView Economics. "But this doesn't change my view that the recession will end later this year. We're probably two months away."
On Wall Street, the employment news pulled stocks lower. The Dow Jones industrials lost about 170 points in morning trading, and broader indices also fell.
Since the recession began in December 2007, the economy has lost a net total of 6.5 million jobs.
As the downturn bites into sales and profits, companies have turned to layoffs and other cost-cutting measures to survive.
(Excerpt) Read more at news.yahoo.com ...
The Associated Press calls the following encouraging news :
“And there was some other encouraging job news Thursday.
In a separate report, the department said the number of newly laid-off workers filing applications for unemployment benefits fell last week to 614,000, in line with economists’ predictions. The number of people continuing to draw benefits unexpectedly dropped to 6.7 million.
Meanwhile, the Commerce Department said orders placed with U.S. factories rose 1.2 percent in May, the most in 11 months. The increase also was better than economists expected.”
Administration officials are also “encouraged” by the “mere” 9.5% unemployment rate — lower than the anticipated 9.6%.
More “encouraging” news :
Newspaper publisher Gannett Co. said it plans to cut 1,400 jobs in the next few weeks, about 3 percent of the work force, as it faces a prolonged slump in advertising revenue. That’s in addition to the 10% it cut the last few months.
Farm machinery company Deere & Co. said 800 salaried employees, or 3 percent of its salaried work force, took a voluntary buyout offer.
Oh well, it could have been worse... Obama’s stimulus saved a hundred law enforcement jobs in Ohio that would have been cut.
In other good news for Giants fans, the Giants lost yesterday by the score of 2-1 instead of 3-1....
So, since the Democrat congress took over, we pretty much lost every job that the Bush congress created, plus an additional 6,000,000.
Now that is hope and change. /sarc
Is it possible for Obama and the Democrats to screw up our economy any worse??
But Obama saved 4 jobs..............he hired them.
Those jobs weren’t “cut”. They vanished. They no longer exist.
Businesses want to stay in business. They know whats coming, from healthcare to Cap N Trade will cost them tons of money. They know the economy will be taking hits with them and will likely see lower sales and profits.
It ain’t rocket science.
9.6% or 10% the numbers are all a sham. If unemployment rates were so great why are payroll tax revenues in freefall and state and local gvts going bankrupt?
I could only imagine the coverage we'd be seeing if Bush were still in office. Hell when the economy was going like gangbusters all you heard was "Bush will be remembered as the next Hoover", "Worst economy since the depression."
There are a lot of people running out of benefits and dropping off the roles as new ones come in. We are really way over 10% unemployed. We need to send home more illegals..now.
So, how’s that “Hope and Change” working out for everyone?
Now watch Obama and his pet RATS pass new taxes on buyout proceeds as “windfall profits”.
If unemployment reaches 10%, the official administration line would be — had it not been for this stimulus, it would have been 10.5%. if it reaches 10.5%, their next line would be, had it not been for Obama’s policies, it would have been 11%.
As Chico Marx used to say when he participated in an auction — go ahead make a your bid, I bid a higher, I got a plenty of numbers.
Obama and his minions stand a really good chance of creating conditions where the economy spirals out of control. The truth is, government spending and regulation isn’t necessarily a bad thing. It’s all a matter of degree. Push too hard, tax too much, and the goose that lays the golden eggs dies.
The folks who are currently running things seem to think there’s no limit. They seem to think they can print and spend and mandate whatever they want, and it just happens. Well, reality is what it is, and you can’t change the natural order of things, even with a majority in congress.
Well soon see whether America can survive with a government that consumes nearly 50% of all production.
sw
Some day maybe, the “free press” will get their due for the way they report.
Yeah, we all hope he will only serve one term.
Did you mean Totus?
He could have used these two as slogans.
Vote for me and your in poverty.
I will not raise your taxes if you make less than $250K. I will call it something else.
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