United States: Unemployment rises again in June
July 8, 2011
Weak labour market figures are raising concerns about the strength of the economic recovery. In June, the economy added only 18,000 jobs, which came in on top of a downward revision to 25,000 new jobs in May (previously reported: 54,000). Moreover, the reading was well below market expectations, which had non-farm payrolls increasing by 105,000. As a result of the virtually flat print, the unemployment rate inched up for the third month in a row to 9.2%. As in previous months, private sector hiring was entirely responsible for new job creation by adding 57,000 new job openings, which nevertheless was well below expectations of 125,000 new jobs. In contrast, the public sector continued to cut payrolls, shedding 39,000 jobs. The economy lost a total of 7.4 million jobs during the official duration of the recession, between December 2007 and June 2009. Since then, the economy has added just 0.5 million new jobs and is not expected to make a major comeback in the upcoming quarters.