July 8, 2011- The employment outlook went from bad to worse from May to June as very few new jobs were added and many cuts were made. The unemployment rate increased for the third consecutive month to 9.2%.
The Labor Department report released Friday was a definite disappointment and once again will raise question about the economy’s recovery and sustainability. Job growth figures had been increased by analysts to about 100,000 in the past few days in anticipation of the report.
But when the report was released the May net jobs were revised down from 54,000 to 25,000 and the net jobs for June came in at a dismal, at best, 18,000. There have only been an average of 215,000 jobs that have been added per month between February and April of this year.
Meanwhile the unemployment rated went up 0.1% to 9.2%. The low for this current year is 8.8%. What made the jobs report quick incredible this month was there were no positive signs to take from it.
Manufacturing was expected to increase and that sector only added 6,000 jobs. Construction jobs remained at all time lows and the once positive temporary help sector lost jobs for the third consecutive month. And in what is becoming par for the course, the government shed another 39,000 jobs in June.
Analysts described it as a retreat across the board and said the last two months reports had been quite scary.