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Tags: Job | Growth | employment | economy

Economists Fear Job Growth Likely to Be Weak in ‘More Disappointing News’

Monday, 02 July 2012 09:29 AM EDT

The Bureau of Labor Statistics will release its June jobs report on Friday and will likely report the economy added a net 100,000 nonfarm payrolls last month, a MarketWatch survey finds.

The unemployment rate should remain unchanged at 8.2 percent.
In May, the economy picked up 69,000 jobs while in April, the economy created 77,000.

By comparison, January and February added 275,000 and 259,000 net jobs, respectively, higher-than-expected numbers that were likely inflated by unseasonably warm winter weather that brought construction jobs online earlier than normal.

Editor's Note: I Wish I Were Wrong — Economist Laments Being Right. See Interview.

Blame soft growth at home and deteriorating economic conditions in key export markets for the dreary outlook for the labor market.

"The recent weakness in hiring is a combination of seasonal issues and the underlying slowdown in U.S. and global economies," says Yelena Shulyatyeva, a BNP economist, MarketWatch reports.

"This week should bring more disappointing news."

The survey did reveal a few optimists, including Joel Naroff, of Naroff Economic Advisors, who predicts the economy will pick up a net 167,000 jobs, adding May's numbers were weak due to seasonal issues.

“I really don’t believe that fundamentally things are as weak as the numbers are saying,” Naroff says, adding corporations are sitting on massive cash stockpiles that can't stay idle forever.

“I don’t think businesses can stop investing. They are not just going to let their cash sit,” Naroff adds.

Others, meanwhile, see continued sluggish improvements, especially as election-year uncertainty crimps investing and hiring.

"Job creation will likely be slow, and will continue to be a soft spot in the economy," says Peter Cardillo, chief market economist at Rockwell Global Capital, according to CNNMoney.

"Along with pressure out of Europe impacting growth, the upcoming elections [in the U.S.] are going to continue to keep corporations from accelerating the hiring process."

Editor's Note: I Wish I Were Wrong — Economist Laments Being Right. See Interview.

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Monday, 02 July 2012 09:29 AM
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