Labor Department reports Says Unemployment is 9.2%

If you are looking for good news forget it. US Labor Department issues their monthly employment stats. The US economy created only a net gain of 18,000 jobs for the month of June. June is the month businesses hire teens and young adults for the Summer and Fall. This year not so much. From CNBC:

U.S. employment growth ground to a halt in June, with employers hiring the fewest number of workers in nine months, dousing hopes the economy would regain momentum in the second half of the year.

Nonfarm payrolls rose only 18,000, the weakest reading since September, the Labor Department said on Friday, well below economists’ expectations for a 90,000 rise.The unemployment rate climbed to a six-month high of 9.2 percent, even as job seekers left the labor force in droves, from 9.1 percent in May.

“The message on the economy is ongoing stagnation,” said Pierre Ellis, senior economist at Decision economics in New York. “Income growth is marginal so there’s no indication of momentum.

If that’s not enough the Labor Department  revised down numbers for April and May:

The government revised April and May payrolls to show 44,000 fewer jobs created than previously reported.

The news hit the White House badly. President Barack Obama has a news conference  in the Rose Garden Friday. From Bloomberg News:

Obama, speaking at the White House Rose Garden, said the report shows that “we still have a long way to go and a lot of work to do to give people the security and opportunity they deserve.”

This comes as the Debt Limit debate rages in Washington:

“The sooner that the markets know that the debt limit ceiling will have been raised and that we have a serious plan to deal with our debt and deficit, the sooner that we give our businesses the certainty that they will need in order to make additional investments to grow and hire,” Obama said.

Republicans seized on the bad news. From AFP via Google News:

“Today’s abysmal jobs report confirms what we all know — that President Obama has failed to get this economy moving again,” thundered the field’s frontrunner, former Massachusetts governor Mitt Romney.

“With their cavalier attitude about the economy, the White House has turned the audacity of hope into the audacity of indifference,” he said, playing off one of the key slogans of Obama’s historic 2008 presidential campaign.

“Today?s unemployment report is another stark reminder of the failure of President Obama?s economic policies,” charged Republican Representative Michele Bachmann, who has surged in recent polls.

Bachmann, who is close the archconservative “Tea Party” movement, cited news reports that US Treasury Secretary Tim Geithner aimed to step down pending a deal to raise the US debt ceiling and avert an early August default.

Meanwhile White House Adviser David Plouffe  says jobs won’t the issue in Next years Presidential Election.  FromThe Hill:

President Obama’s senior political adviser David Plouffe said Wednesday that people won’t vote in 2012 based on the unemployment rate.

Plouffe should probably hope that’s the case, since dismal job figures aren’t expected to get any better for Obama and the economy on Friday.

Read it All.

Happy Summer!!!

Yeah Right


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