- The most recent jobs report gives a disappointing view of the US economy. The American employers were able to add just 69,000 jobs in the previous month, much lower than what the economists had predicted.
- According to the household employment survey, 422,000 jobs were added in May but the labor force increased by 642,000 thereby raising the unemployment rate for the current month from 8.1% to 8.2%.
- The personal income and nominal consumer spending have also increased by 0.2% and 0.3% respectively.
The recent job figures is a big
blow for the President Obama administration, which now has three continuous
months of disappointing job figures to its credit. Standard and Poor’s 500 and
Dow Jones are going through the worst period of the current year. With about
five months remaining in the election, the current economic indicators could
turn out to be a game changer.
"It is now clear to everyone that President Obama's policies have failed
to achieve their goals and that the Obama economy is crushing America's middle
class," said Romney while commenting on the report. On the other hand,
the President believes that the economy “will
come back stronger,".
It is not just US, the entire global
economic system is suffering, UK has slipped into another recession while the
rest of Europe copes with the debt crisis, the Indian rupee is weakening and China’s
growth is slowing down. "The U.S. is
not an island, and what happens abroad matters here," said an
economist from Mesirow Financial.
According to the recent polls
conducted by Associated Press and GfK, 52% of Americans have disapproved of the
White House’s economic strategy while 46% have approved.
Some circles are looking towards
the Feds to intervene, but there is very little the central bank can do as it
has already maintained the interest rates at record lows. However, under the
current circumstances, the Federal Reserve is likely to announce some new
monetary policy actions in the Federal Open Market Committee meeting in 20th
June.
Your comments and feedback are always appreciated
Sarfaraz Khan