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June Jobs Report Shows Only Modest Growth

June Jobs Report Shows Only Modest Growth

The US economy added 80,000 jobs in June after a revised increase of 77,000 jobs in May, according to Labor Department figures. Unemployment stayed the same, at 8.2 percent.

The figures are disappointing, with economists having predicted a 100,000 gain, and not enough to make a real change in the backlog of nearly 13 million unemployed individuals.

Similarly “tepid” job growth — around 130,000 a month, which would be “just enough” to keep pace with growth in the working-age population — is expected for the rest of the years, say economists in the New York Times.

The first quarter of the year saw an average of 226,000 jobs added a month, while the average from April to June has been just 75,000. Job losses occurred in retailing, transportation and government sectors.

Job growth slowed suddenly in March after picking up in the winter and some economists have wondered if the “unseasonably warm winter, rather than a fundamentally healthier economy, had been the real source of the temporary employment surge,” says the New York Times.

The jobless rate worsened for African Americans rose to 14.4 percent in June from 13.6 percent in May. It changed little whites at 7.4 percent and for Hispanics at 11 percent.

The underemployment rate — referring to part-time workers who would prefer a full-time position and those wanting work but have given up looking — rose to 14.9 percent from 14.8 percent.

In a spot of good news, average hours worked increased slightly, to 34.5 hours in June from 34.4 in May. Average hourly wages rose six cents to $23.50, meaning that hourly pay has increased 2 percent in the last 12 months.

Corporate profits fell in the first quarter of 2012, the first time since 2008, the Commerce Department reported last week. These losses are not so much from the developing world but due to the ongoing sovereign debt crisis in Europe. Said Andrew Tilton, a senior United States economist at Goldman Sachs, “When you factor in the effect on U.S. trade, financial markets and credit availability, the Europe crisis is probably taking a percentage point off of U.S. growth.”

The economy is sure to play a significant role in President Barack Obama’s bid for reelection. As Bloomberg notes, since World War II, Ronald Reagan has been the only president who stayed in office when the unemployment rate was over 6 percent. The rate was 7.2 percent in the month of his re-election in 1984, after falling almost three percentage points in the previous 18 months.

Related Care2 Coverage

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38 comments

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9:18PM PDT on Jul 9, 2012

It's the conservative thinking that corporations should be able to pollute all they want, make as much money as they want, and not pay taxed at all to help clean up their messes that drives them to 3rd world countries to get slave labor, and then get rich off the profits and still complain about paying taxes...

Hate to say, but, our planet can't keep up with the pollution, and if you leave domestic soil, you should have to pay trade tariffs on your goods. Come back home and get tax breaks, and be responsible.

It figures that republicans want to preach about individual responsibility when people disagree with them, but, when it comes to theirs, it's all about rights. Just remember, each right comes with a responsibility, and if you can't handle that, you're not American.

10:39AM PDT on Jul 9, 2012

Corporate profits down = Fewer jobs

Millions of dollars we don't have to build some bridges and roads to nowhere Did not help before and won't help now....unless you own a Cement company

12:39PM PDT on Jul 8, 2012

HELLO CONGRESS, ANYONE THERE?????? WE ARE NOT FOOLED....THEY ARE THE BERLIN WALL TO BEAT THE BERLIN WALL AND THEY KNOW EXACTLY WHAT THEY ARE DOING. THIS IS SUCH AN OBVIOUS PLOY THAT I AM SURPRISED THAT THE CITIZENS OF THIS GRET COUNTRY DO NOT KNOW WHEN THEY ARE BEING TOTALLY MANIPULATED BY A GANG OF VERY DANGEROUS MEN /PEOPLE WHO ARE STANDING IN THE WAY OF THEIR VERY FREEDOMS AND ABILITY TO EARN A LIVING.

PLEASE REALIZE THIS DOES NOT HAVE TO BE!

5:39AM PDT on Jul 8, 2012

Both parties are screwing us. And I gaurantee the real unemployment rate is way higher than 8.2%.

5:24PM PDT on Jul 7, 2012

Thanks for the report. I am not surprised.

3:33PM PDT on Jul 7, 2012

What a situation to be in! We need to have a growing economy and job market for Obama to be reelected. The nightmare of a complete Republican takeover is unthinkable. And yet, once again, we cannot keep on growing forever on a finite planet with limited resources. The upcoming environmental collapse will put an end to our reckless growth, but it will also make it easier for totalitarian regimes the world over such as the GOP to take advantage of the disaster and seize control. It seems as though we are destined for chaos in one form or another. And we only have ourselves to blame.

1:30PM PDT on Jul 7, 2012

David, to put it blunly, the jobs bills the house passes are crap, and they are crap on purpose.

12:36PM PDT on Jul 7, 2012

David, you are partially correct. We need to get the obstructionist repubs out of the way. They veto infrastructure bills, that would not only make our bridges etc. safer, but would employ thousands of people.

And they even have the nerve to admit they are screwing over us, so that Obama will look bad.
And you are silly enough to defend them.

12:36PM PDT on Jul 7, 2012

Meredith S - you took the words right out of my mouth!

The party of NO, the Repubs, have attempted to stop Obama at every turn...they don't care if their country is destroyed...just to destroy HIM. And yet, we still have growth!

Obama/Biden - 2012!

11:23AM PDT on Jul 7, 2012

Republicans: Keeping millions out of work to put one man out of a job

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