Saturday, July 7, 2012

10 reasons why this jobs market is even worse than the weak June employment report


Investors Business Daily ^ | 07/07/2012

Nonfarm payrolls rose by just 80,000 in June, slightly worse than expected and the third straight month of sub-100,000 job growth. The jobless rate held at 8.2%. The employment report was disappointing. Here are 10 reasons why the jobs market is even worse than the headline figures. 1. Unemployment has topped 8% for 41 straight months. Last time above 8% - December 1983.

2. The jobless rate actually makes the labor market look better than it actually is. The rate only counts people who want a job but don't have one. But the labor force participation rate was 63.8% in June, just above near modern-era lows. (It was 66.2% in January 2008 and 67.3% in April 2000). Otherwise, unemployment would be around 11%.

3. The employment-to-population ratio for those aged 25-54 dipped to 75.6% in June, down sharply from 80% in January 2008. Many economists left and right view the core employment ratio as one of the cleanest views of the labor market, because it includes those who have stopped looking for work while excluding the bulge in retirees and young adults in school.

4. Chronic unemployment. The average length of unemployment rose to 39.9 weeks in June, close to recent peak. It was 17.4 weeks at the January 2008 peak and 23.9 weeks in June 2009, when the recession officially ended. Long-term joblessness is particularly bad because skills erode or become obsolete, leading to permanent losses in income.

5. The U.S. added 225,000 jobs in the second quarter vs. 677,000 in Q1. That was the smallest quarterly gain since Q1 2010 — excluding the Q3 2010 post-Census decline. June's gain of 80,000 is not enough to absorb new workers to prevent the unemployment rate from rising over the long term.

(Excerpt) Read more at news.investors.com ...


From the American Thinker:
EXCERPT:
The economy created just 80,000 jobs in June, the Bureau of Labor Statistics reported Friday. But that same month, 85,000 workers left the workforce entirely to enroll in the Social Security Disability Insurance program, according to the Social Security Administration.
The disability ranks have outpaced job growth throughout President Obama’s recovery. While the economy has created 2.6 million jobs since June 2009, fully 3.1 million workers signed up for disability benefits.
In other words, the number of new disability enrollees has climbed 19% faster than the number of jobs created during the sluggish recovery

Read more:
http://www.americanthinker.com/blog/2012/07/more_on_the_june_unemployment_figures.html#ixzz1zwgB74yJ

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