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Job Numbers Disappoint Again, Raising Fed Speculation

Friday, 06 Jul 2012 08:56 AM

The U.S. economy suffered a third month of sub-100,000 job growth in June, which could draw a reluctant Federal Reserve a step closer to a third round of bond purchases.

Businesses outside the farm sector added just 80,000 workers to their payrolls last month, and 1,000 fewer positions were created in the previous two months than had been thought, the Labor Department said on Friday.

The unemployment rate held steady at 8.2 percent even as more people entered the labor force.

The economy needs job growth of around 125,000 a month to keep pace with growth in the working age population. Job growth averaged 75,000 per month in the second quarter compared to 226,000 in the first three months of the year.

 

HERE IS WHAT HAPPENED IN JUNE

* Private sector payrolls rose 84,000, again accounting for all the job gains. Employment in the services industries increased 71,000 jobs after rising 126,000 in May.

* Retail payrolls fell 5,400. Professional and business services employment rose 47,000, while 13,000 jobs were created in leisure and hospitality.

* Temporary hiring accounted for 25,200 jobs after contributing 18,600 jobs in May. Economists often look at temporary jobs as a leading indicator of future full-time hiring, although some say companies are relying on temporary staff to fill longer-term needs.

* Employment in the goods-producing sector rebounded 13,000 last month, with manufacturing payrolls rising 11,000 after increasing 9,000 in May. Automakers hired 6,700 people after creating 4,400 jobs in April.

* Construction payrolls rose 2,000, ending four straight months of declines.

* Government employment fell 4,000, declining for a fourth month in a row.

* Hourly earnings increased 6 cents and the average workweek rose to 34.5 hours from 34.4 hours in May.

* The diffusion index of payroll employment - which measures the proportion of industries that showed job gains during the month - fell to 57.9 percent from 59.8 percent in May.

 

MIXED SIGNALS FROM THE HOUSEHOLD SURVEY

* The household survey from which the jobless rate is derived showed employment increased 128,000, rising for a second straight month. About 156,000 people entered the labor force in June.

* The labor force participation rate, or the percentage of Americans who either have a job or are looking for one, was steady at 63.8 percent.

* A broad measure of unemployment, which includes people who want to work but have stopped looking and those working only part time but who want more work, edged up to 14.9 percent from 14.8 percent in May.

* A total of 12.7 million Americans were unemployed in June and 41.9 percent of them had been out of work for six months and more.

* All told, 23.4 million Americans are either out of work or underemployed.

© 2017 Thomson/Reuters. All rights reserved.

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