Friday, July 6, 2012

Disappointing US Jobs Report, June 2012

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. 



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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