Unemployment Reaches 9.5 Percent, Highest in 26 Years
The increase keeps the country on track to hit 10 percent unemployment by year's end
The Labor Department's job report this morning may not be surprising, but it's still disappointing: The unemployment rate rose in June to 9.5 percent, making it the worst in 26 years.
The rise, from 9.4 percent in May, is slight. Still, it keeps the economy on track to hit a 10 percent unemployment level by the end of the year, as analysts have predicted. And at 467,000, the number of jobs shed in June was much worse than the 350,000 that economists had forecast. In total, 14.7 million Americans are looking for work—almost twice the number when the recession began in December 2007.
The news isn't good for the Obama administration, which lobbied for the $787 billion stimulus package based on the idea that it would create millions of jobs. The White House says there are more jobs in the economy than there would have been without the legislation. But that explanation isn't convincing the public, only 52 percent of whom now say the stimulus has or will restore the economy, according to one recent poll.
As usual, the numbers would have been even worse if it weren't for the Labor Department's narrow definition of an unemployed person. If jobless individuals haven't "actively" sought jobs in the past four weeks, such as by submitting applications or attending interviews, they're not included in the tally. Also excluded are those who would like full-time jobs but can find only part-time work. The unemployment rate would be 16.5 percent if those individuals were included.
The data also show that some industries are much worse off than others. The hardest-hit are construction workers, more than 17 percent of whom are unemployed. That's more than twice their unemployment rate one year ago. Meanwhile, those involved in mining, quarrying, and oil and gas extraction are facing a 13.6 percent unemployment rate, more than four times the 3.3 percent they saw last year. Even education and healthcare—which together saw growth in June, adding 34,000 jobs—have a 6.1 percent unemployment rate.
While it's daunting, the unemployment rate isn't necessarily a clear sign of how the economy is doing as a whole. That's because it's a lagging indicator: Businesses can't hire (or even retain) their workers until they have the money to do so, which comes about when the credit markets loosen up and when consumers start spending again. The good news, therefore, is that the unemployment rate doesn't automatically mean the economy's not stabilizing. The bad news? Even once the country emerges from recession, it's likely that the unemployment rate will continue to slump.
- Read about the stimulus.
- Read about 10 not so "recession-proof" industries.
- Read about unemployment predictions from the IMF's top economist.
Reader Comments
Obama Shoots Himself in Foot Again
Back in January Obama predicted the unemployment rate would go to 8% unless the the stimulus bill was passed immediately. It was passed without most Congressmen even reading the thing. And the forecasts were seriously flawed as they continue to be in other preposterous political projects.
Now it has been passed and the unemplyment rate has continued to go up to 9.5% under Obama to the tune of over 2 million lost jobs since he took office and over 500,000 of the unemployed dropping off the list in June because they no longer are even looking for a job.
Obama's Stimulus Bill was not targeted to help the economy. Instead it target tons of Liberal Democrats social re-engineering project which stimulate the political agenda, but not the fiscal agenda.
Why has only $53 billion of the stimulus package been approved thus far? NOT implemented, only approved!
Now there is talk of additional stimulus funding! That is riduculous! Just use the remainder of the $734 billion that has already been approved and put it to work creating jobs now rather than in future years for winning campaigns when it will be too late and on stupid, stupid earmarks that have no economical benefit.
Construction weakness drives US job losses
This really should not have been a surprise. Jobs changes in the US are now driven by construction. Construction spending data a day earlier showed a 0.9% decline, which translated in nearly half a million jobs lost.
Mass media is not reporting on this relationship for some reason, but that shouldn't be a surprise either. Housing recovery will be key to any significant economic improvements, just as it's decline had led to the recession.
http://www.SoberLook.com
The Porkulus is a TRAIN WRECK
Obama’s ill-advised $700B+ "stimulus" program is a train-wreck: these jobs figures are far worse than the ones the White House warned us about if we DIDN’T pass the bill- so it was passed, and then unemployment soars anyway?
Instead of creating jobs, interest rates were bumped up, the dollar slid... and it didn’t help anybody get any work. Much of this is due to the fact that Obama’s radical agenda has mortified almost every machine of job-and-growth creation in the country.
The One couldn’t deliver the type of "temporary, targeted, and timely" bill that he promised repeatedly- regardless of his image in the MSM as omnipotent, Obama simply lacks the the political stature to control Pelosi and Reid… who hit the trough hard, while bickering like siblings.
And the lack of GOP co-conspirators exposed Obama politically… this legislation now looks to be a HUGE gamble. When all this pork-n-welfare fails to generate any real economic gains, the Democrats will face a bloodbath in 2010.
One could even make the argument that Obama knows his legacy will be in tatters by 2012… and is just ramming through as much of his far-left agenda as he can before the day comes when people cringe at the mere mention of his name… sure seems like it.
http://reaganiterepublicanresistance.blogspot.com/
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