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US UNEMPLOYMENT REPORT FOR JUNE 2012

July 6, 2012

The US Labor Department today (07-06-2012) released its June employment report showing continued weak momentum in new job growth. The report shows that the US economy added 80,000 jobs in June which maintained the 8.2% unemployment rate.

Although not necessarily a bad showing under the bleak conditions of the not so distant past, new job growth is below the 95,000 that most economists had expected. In general, the numbers show new job growth is just enough to keep pace with population growth, but not nearly enough to reduce the backlog of 13 million unemployed workers.

From December 2011 and through February, private companies added an average of 252,000 workers a month. However, beginning from March, job growth began to slow. June’s employment numbers are beginning to show a strong trend that the U.S. won’t be reducing its unemployment below 8.0% anytime soon.

Among the few industries showing decent job growth was temporary help services which accounted for 31% of all new job growth. This strongly suggests that US employers are not confident enough that the economy is improving. 07.06.2012