The
US was able to add just 80,000 jobs in the month of June. This comes as a surprise
as the market was expecting better results. Analysts had earlier predicted that
the country should add at least 100,000 jobs in June.
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The
unemployment rate remained at 8.2%. The job figures for April and May were also
revised. It is now revealed that 68,000 jobs were added in April and 77,000 in
May, as opposed to 77,000 and 69,000 for the respective months announced
earlier. Employment gains in the two months however, haven’t changed.
In
other words, this is the third consecutive week of poor job report. On an
average, just 75,000 jobs per month were added in April, May and June. To put
things in perspective, US was able to create 226,000 jobs per month in the
first three months of the current year, and even then the economy wasn’t booming.
On a
slightly positive note, the average work week rose by 0.1 hours to 34.5 hours
and earnings increased by 6 cents to $23.50 per hour.
Not
surprisingly, the markets were hit by the news as Dow Jones average dropped by
188 points, completely wiping out the entire week’s gains. Only AT&T was
able to show some positive results out of the 30 stocks of Dow Jones average.
Matt
Romney, in a press conference, has called the latest jobs report a “kick in the
gut”. The Obama campaign spokesman Ben LaBolt has responded, “The President
brought us back from the brink of another Depression but he doesn’t believe our
work is done -- he’s got a plan to restore the middle class and create a
million jobs now that Mitt Romney opposes and Republican leaders have
blocked,"
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Relevant Links
Dollar
Advances on Euro After Jobs Report [The Wall Street Journal]
Oil
falls as U.S. jobs data disappoints [Reuters]
Disappointment
as US economy added 80,000 jobs in June [The Guardian]
June
Jobs Report: U.S. Adds 80,000 Jobs [The Huffington Post]
