Friday, July 6, 2012

June Employment Situation Report


U.S. employers added only 80,000 jobs in June, a third straight month of weak hiring that shows the economy is struggling three years after the recession ended.
The Labor Department said Friday that the unemployment rate was unchanged at 8.2 percent.
The economy has added just 75,000 jobs a month in the April-June quarter. That's one-third of 226,000 a month created in the first quarter. Job creation is also trailing last year's pace through the first six months of 2012.



THE EMPLOYMENT SITUATION -- JUNE 2012 - U.S. Bureau of Labor Statistics


Nonfarm payroll employment continued to edge up in June (+80,000), and the
unemployment rate was unchanged at 8.2 percent, the U.S. Bureau of Labor
Statistics reported today. Professional and business services added jobs,
and employment in other major industries changed little over the month.

Household Survey Data

The number of unemployed persons (12.7 million) was essentially unchanged
in June, and the unemployment rate held at 8.2 percent. (See table A-1.)

Among the major worker groups, the unemployment rate for blacks (14.4 percent)
edged up over the month, while the rates for adult men (7.8 percent),
adult women (7.4 percent), teenagers (23.7 percent), whites (7.4 percent),
and Hispanics (11.0 percent) showed little or no change. The jobless rate
for Asians was 6.3 percent in June (not seasonally adjusted), little changed
from a year earlier. (See tables A-1, A-2, and A-3.) 

In June, the number of long-term unemployed (those jobless for 27 weeks
and over) was essentially unchanged at 5.4 million. These individuals
accounted for 41.9 percent of the unemployed. (See table A-12.)

Both the civilian labor force participation rate and the employment-
population ratio were unchanged in June at 63.8 and 58.6 percent,
respectively. (See table A-1.)

The number of persons employed part time for economic reasons (sometimes
referred to as involuntary part-time workers) was essentially unchanged at
8.2 million. These individuals were working part time because their hours
had been cut back or because they were unable to find a full-time job.
(See table A-8.)

In June, 2.5 million persons were marginally attached to the labor force,
down from 2.7 million a year earlier. (These data are not seasonally
adjusted.) These individuals were not in the labor force, wanted and were
available for work, and had looked for a job sometime in the prior 12
months. They were not counted as unemployed because they had not searched
for work in the 4 weeks preceding the survey. (See table A-16.)

Among the marginally attached, there were 821,000 discouraged workers
in June, a decline of 161,000 from a year earlier. (These data are not
seasonally adjusted.) Discouraged workers are persons not currently
looking for work because they believe no jobs are available for them.
The remaining 1.7 million persons marginally attached to the labor
force in June had not searched for work in the 4 weeks preceding the
survey for reasons such as school attendance or family responsibilities.
(See table A-16.)

Establishment Survey Data

Total nonfarm payroll employment continued to edge up in June (+80,000).
In the second quarter, employment growth averaged 75,000 per month,
compared with an average monthly gain of 226,000 for the first quarter of
the year. Slower job growth in the second quarter occurred in most major
industries. (See table B-1.)

Professional and business services added 47,000 jobs in June, with temporary
help services accounting for 25,000 of the increase. Employment also rose
in management and technical consulting services (+9,000) and in computer
systems design and related services (+7,000). Employment in professional
and business services has grown by 1.5 million since its most recent low
point in September 2009.

Employment in manufacturing continued to edge up in June (+11,000).
Growth in the second quarter averaged 10,000 per month, compared with
an average of 41,000 per month during the first quarter. In June,
employment increased in motor vehicles and parts (+7,000) and in
fabricated metal products (+5,000).

Employment continued to trend up in health care (+13,000) and wholesale
trade (+9,000) in June.

Employment in other major industries, including mining and logging,
construction, retail trade, transportation and warehousing, financial
activities, leisure and hospitality, and government, showed little or
no change.

The average workweek for all employees on private nonfarm payrolls
edged up by 0.1 hour to 34.5 hours in June. The manufacturing workweek
edged up by 0.1 hour to 40.7 hours, and factory overtime was 3.3 hours
for the fifth consecutive month. The average workweek for production and
nonsupervisory employees on private nonfarm payrolls edged up by 0.1
hour to 33.8 hours. (See tables B-2 and B-7.)

In June, average hourly earnings for all employees on private nonfarm
payrolls increased by 6 cents to $23.50. Over the year, average hourly
earnings have increased by 2.0 percent. In June, average hourly earnings
of private-sector production and nonsupervisory employees increased by
5 cents to $19.74. (See tables B-3 and B-8.)

The change in total nonfarm payroll employment for April was revised
from +77,000 to +68,000, and the change for May was revised from
+69,000 to +77,000.


10 comments:

  1. It's Obama's fault.

    ReplyDelete
    Replies
    1. Obama sent all of our oil drilling jobs to Brazil. Isn't it funny that some think he can do no wrong and just blames others. No need to respond I know you'll say it's Bush's fault next.

      Delete
    2. No. Just another distortion of fact.
      The decision was made by the U.S. Export Import Bank to facilitate the sale of American manufactured equipment to Brazil.

      Delete
    3. It’s Global Greed’s Fault!

      Delete
  2. Really, only 8.2 percent?

    It's still almost 2 percentage points better than in May of 2009. No one ever thought this recovery was going to be overnight.

    What they really need to focus on is stop spending money. Screw the consequences for the economy, just stop spending money. It's what Clinton did and it did more to rev things up than any government handout.

    ReplyDelete
    Replies
    1. Where were you when Bush cut taxes twice and then engaged in two wars that were off the budget and a Medicare drug program that was unpaid for?

      He entered office with a budget surplus and squandered it in the name of ideological purity and supply side economics.

      After Obama's stimulus program unemployment declined and job creation increased.

      Unfortunately, the preliminary numbers for GDP decline in the fourth quarter of 2008 were later shown to be underestimated by over twice.

      If Bush hadn't squandered resources and wasted a potential surplus, money would have been present to spur demand. It's just like any family who uses savings in tough times to get over the hump or a new business that finances growth with debt in light of future ability to repay.

      The Republicans have nothing more to offer than the same wrong-headed policies that put us in this mess. Further, their dominance of the House since 2010 has done nothing but perpetuate the quagmire.

      Delete
    2. AnonymousJuly 6, 2012 10:57 AM
      " Isn't it funny that some think he can do no wrong and just blames others. No need to respond I know you'll say it's Bush's fault next. "

      It only took 2.5 hours more but Anon 10:57 made a predictable call!

      Delete
  3. The unemployment rate stayed steady which means the economy created as many jobs as new entrants to the job market. According to Bloomberg news service hours per week increased as companies used overtime instead of new hiring. Additionally baked into the numbers above is 25,000 temporary workers. What this means is that there is additional demand for goods and services, but that companies still aren't ready to delve into additional headcount. They would prefer to meet demand through overtime and temporary workers. Additionally average worker wage, for those employed, has gone up. All this means that the US economy is not doing too badly, but there's some uncertainty around the ability for it to continue. The European and Chinese economies are enterring tough patches and that may have a negative impact on the US. The decrease in gas prices is also a bright patch, but it is yet to be seen if Americans will increase discretionary spending or use the savings on increased debt retirement. Increased discretionary spending of course would boost domestic demand with a positive impact on corporate balance sheets and thus the hiring situation.

    ReplyDelete
  4. WHY NOT BLAME IT ON THE WEATHER?

    Dismal Hiring Shows Economy Stuck in Low Gear
    By: Jason Lange

    WASHINGTON | Sat Jul 7, 2012 3:24am EDT (Excerpts):

    WASHINGTON (Reuters) - U.S. employers hired at a dismal pace in June, raising pressure on the Federal Reserve to do more to boost the economy and dealing another setback to President Barack Obama's reelection bid.

    "We're just crawling forward here," said Nigel Gault, an economist at IHS Global Insight in Lexington, Massachusetts.

    Speaking at a campaign rally in Ohio, Obama said the pace of job creation needs to pick up.

    "It's still tough out there," he said.

    Mitt Romney, Obama's Republican challenger, assailed the president for not doing enough to get people back to work.

    "This kick in the gut has got to end," Romney told reporters in New Hampshire.

    HIRING STRIKE

    Last month, the Fed extended a program aimed at keeping long-term interest rates down and said it was prepared to do more to spur the economic recovery if needed.

    The somber jobs report could move the central bank closer to a third round of so-called quantitative easing, or QE3.

    Reuters polled 16 primary dealers - the large financial institutions that do business with the Fed - and found 12 expect QE3 by year-end, with eight expecting it either at the Fed's next meeting, which wraps up on August 1, or its subsequent gathering in September.

    "Economists estimate roughly 125,000 jobs are needed each month just to hold the jobless rate steady.

    *Part of the slowdown could be because mild weather* led companies to boost hiring during the winter at spring's expense.

    ReplyDelete

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