You wonder about President Obama’s mindset let alone some progressive Democrats who see today new Job numbers look good on the surface. However,when one digs deeper the numbers are much worse than expected. The US Labor Department release the June Employment Rate drops to 9.5% as 125,000 people overall as temporary census workers returns to Unemployment rolls. Analysts expected only 110,000 would lose their jobs.
The bigger news is the drop in unemployment rate is that 625,ooo people give up looking for jobs realizing companies are not hiring in this environment. This news along with the news about consumer confidence.”Overall what this does is it reinforces the market’s view that the U.S. recovery is losing steam,” said Greg Salvaggio, vice president of trading at Tempus Consulting in Washington.
President Obama say this is good news and we’re heading in the right direction. But,”We’re not headed there fast enough for a lot of Americans,” he said at Andrews Air Force Base in Maryland. “We’re not headed there fast enough for me, either.”
The president said jobs is his number one priority. Republicans say he’s not living up to his promise. “The writing is on the wall for President Obama’s stimulus policies and everyone — taxpayers, economists, and the rest of the world — sees it but him,” said House Republican Leader John Boehner.
Private Industry hired only 83,000 jobs in June, it is an improvement over May where only 33,000 people found work. Analysts told Reuters that they expect 112,000 hires. In June 225,000 temporary workers for 2010 were let go as the main count of the census is complete.
“We are still on track for a fairly moderate recovery,” said Julia Coronado, an economist at BNP Paribas in New York. “There have been some concerns that maybe we are heading for a double-dip. The report eases those concerns in the sense that we are still creating private sector jobs.”
The news sent the markets into a tail spin. Dow Jones Industrial Average fell 46.05 points to 9,686.48. The Standard and Poor’s 500 index drops 4.79 to 1,022.58. The NASDAQ slides down 9.57 to 2091.79.
“We are in a difficult situation. I don’t think there is political will to have another stimulus program and even if we did I am not sure people feel it would be that effective,” said Stephen Bronars, a senior economist at Welch Consulting in Washington.