The U.S. economy is destroying jobs in June
July 3, 2010
The U.S. economy is destroying jobs in June for the first time this year, with the end of thousands of temporary contracts in the public sector related to the identification and recruitment of fewer than expected in the private sector.
It is a blow to Barack Obama's job is a priority.The President of the United States must also announce Friday near 800 million dollars in loans and grants to finance infrastructure projects which it expects 5000 direct job creation.
The U.S. economy has eliminated 125,000 jobs last month non-farm, the number of destruction, the highest since October 2009, announced the Department of Labor.
In the public sector, 225,000 temporary jobs related to the census were destroyed.
The private sector created 83,000 jobs in June, after 33,000 in May and cons 112,000 expected by the market.
The authorities have revised upwards the figures for May and April, so that 25,000 more jobs were created than initially announced on these two months.
In all (these figures) reinforced the view of the market that the U.S. recovery is losing momentum, "said Greg Salvaggio, Tempus Consulting in.
"We had bad real estate and manufacturing statistics yesterday and low consumer confidence early in the week.Now we have poor employment figures (….) There are now very, very serious concerns that the U.S. economy begins to stumble. "
The unemployment rate however declined to 9.5%, its lowest level since July 2009, the final output for the labor market of some of the unemployed.
Analysts polled by Reuters had expected an average destruction of 110,000 jobs and an unemployment rate rose to 9.8% after 9.7% observed in May
FEAR OF A RETURN TO THE RECESSION
In the important area of services, 91,000 jobs were created in June after the 20,000 recorded creations in May, while distribution has destroyed 6,600 positions last month.
Affected by the sharp drops in activity recorded in the construction and real estate after a tax credit, the sector of production of goods destroyed 8,000 jobs in June Jobs in manufacturing have slowed with 9,000 jobs, against 32,000 in May
The working week for its part, declined to 34.1 hours on average in June, against 34.2 hours last month.
The current situation of employment in the United States and the recent economic statistics are considered disappointing to some analysts feared a return to recession.The rising discontent in the U.S. administration against Obama, whose Democratic Party could be sanctioned during the midterm elections in November.
"We are in a difficult situation. I do not think there is political will to launch a new recovery plan, and even if we did I'm not sure people are feeling the efficiency," warns Stephen Bronars, an economist with Welch Consulting.
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