Archive for Saturday, July 9, 2011

Weak hiring casts doubts on rebound

July 9, 2011

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— Hiring slowed to a near-standstill last month, raising doubts that the economy will rebound in the second half of the year.

The report baffled economists who had predicted much stronger job creation. And it escalated a debate in Washington over how to spur hiring and energize the economy while also cutting federal spending.

Just 18,000 net jobs were created in June, the fewest in nine months. The unemployment rate rose to 9.2 percent, the highest rate of the year, the Labor Department said Friday.

Stocks plunged after the report was released, although the market recovered some losses in late-afternoon trading. The Dow Jones industrial average closed down 62 points for the day. Broader indexes also fell.

For President Barack Obama, the sputtering job market represents a threat 16 months before his re-election bid.

“Our economy as a whole just isn’t producing nearly enough jobs for everybody who is looking,” Obama acknowledged in a speech in the White House Rose Garden.

Obama used the dismal job data to press Congress to raise the government’s borrowing limit. He also said Congress could strengthen the economy by passing three free-trade accords, approving government projects to create construction jobs and extending a Social Security tax cut.

But Republicans oppose an increase in the $14.3 trillion borrowing limit without steep cuts in spending. And they said the report reinforces their argument that tax increases would stunt job growth and shouldn’t be part of any deal.

Friday’s report suggested that a slowdown that struck the economy in the spring and curtailed job creation may be more than brief.

“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.

A result is that more people are giving 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.

Comments

jmadison 4 years ago

Obama had all the answers for the economy while a candidate. He has been a miserable failure since becoming President. He has made things worse.

jhawkinsf 4 years ago

You've stumbled upon half the problem and therefore, half the solution. Only candidates can solve the problem. Once they are elected, they lose the power to solve the problem.

jhawkinsf 4 years ago

Just to clarify my comments from above. What I was trying to say in a funny way was that it's much easier to be a candidate than it is to be an elected official. It's much easier to say that this program or that program will fix a particular problem. It's much more difficult to really fix the problem.
It would be easy for me to say that Bachmann or Paul or Romney would make a great President or that Cuomo could be a great President after getting elected in 2016. I doubt any of them really would. As I doubted Obama would become a great President. The current atmosphere in Washington is so viral that Jesus himself would have a hard time working with the "other" side, (other being defined as Democrats if you're Republican and Republican if you're Democrat).

notanota 4 years ago

Actually many of the Keynesians have been saying that we didn't spend enough on the stimulus package and were enacting austerity measures too soon. Ie, they did get it right, but go ahead and make up your own fantasy version of what they said, since it suits your argument better.

http://krugman.blogs.nytimes.com/2010/07/28/how-did-we-know-the-stimulus-was-too-small/ http://krugman.blogs.nytimes.com/2011/07/08/austerity-usa/

Steve Jacob 4 years ago

The day before the jobs report, consumer spending report for June was great. We might have to accept a "jobless recovery".

Flap Doodle 4 years ago

Remember, the current regime has declared that unemployment isn't going to be a factor in the next election.

notanota 4 years ago

If Bachman's the nominee, it won't be.

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