Employment Rates Get Worse in US

JobsEven bad news for the United States economy as employment rates continue to collapse for the month of June. Analysts have predicted a steady decrease in employment but for this month, the rates were even lower than expected. This is a great blow to the economy which is already spiraling down.

This news now poses a huge challenge for the Federal Reserve on whether they should do more than they should to get things moving in the country’s economy. The Federal Reserve will meet this Tuesday where these measures will be discussed in the table.

According to Nigel Gault, chief economist at IHI Global Insight, growth of unemployment rate is even slower than the past quarters and has reached a glacial pace. No, it is not a double dip yet, but a very slow growth.

On Friday, the Labor Department reported that non-farm payroll decreased from to 131,000 from last month. This decline has been consistent with the past months activity as the temp government jobs also dropped by a staggering 143,000.

Private employment on the other hand showed a slight increase in their employment rates as they gained 31,000 at 71,000 in the month June. A government revised payroll revealed that unemployment dropped to 97,000 from the month of May and June. Over-all, it is expected that the July unemployment rates fall to 65,000 and the private sector rise to a modest increase of 90,000.

This slow growth has taken its toll in the US stock market as it ended down with the rallying of safe-haven government bonds which drove the yield of the 2 year Treasury note to an all time low.

The US dollar dropped to an almost 15-year low against the Yen and the Euro as more workers ended up getting even more discouraged of ever finding jobs in the country.


Image: Michelle Meiklejohn / FreeDigitalPhotos.net

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Posted by on Aug 7 2010. Filed under Business, Featured, New. You can follow any responses to this entry through the RSS 2.0. Both comments and pings are currently closed.

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