Unemployment rate lowered to 9.5, Private payroll jobs decline

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michelle

03 July, 2010

Unemployment dropped from 9.7 per cent to 9.5 percent which is the lowest since July 2009. President Barack Obama said the economy is moving in the right direction, but not quickly enough.

A SLOWDOWN in economic recovery was clearly evident from a weak June jobs report. Employers have cut down 125,000 jobs last month, which is the highest since October, as per the Labor Department.

The loss was driven by the end of 225,000 temporary census jobs. Businesses added a net total of 83,000 workers, which though added to job gains but did not suffice for the economic recovery.

Unemployment dropped from 9.7 per cent to 9.5 percent which is the lowest since July 2009. In a separate report, factory orders fell by 1.4 percent in May, which is again the biggest drop since March 2009. In May, home sales plunged and construction spending dropped after a popular homebuyers' tax credit expired on April 30. Consumer confidence has fallen sharply.

President Barack Obama said the economy is moving in the right direction, but not quickly enough. The disappointing jobs report added to investors' concerns about the economy.

The nation still has 7.9 million fewer private payroll jobs than it did when the recession began. It is estimated that at a pace the economy is growing, it would take nearly seven years to regain the jobs lost during the recession.

Around ten lakh jobs are required to keep up with the population growth for which the economy has to now double its speed in creating jobs. The leisure and hospitality industries, temporary staffing agencies, and education and health services providers also added jobs. Retailers, construction firms and financial service providers cut payrolls.

The employment report comes after Congress adjourned Thursday for the weeklong Independence Day recess without extending jobless aid. That has already left 1.3 million people without benefits. Senate Republicans blocked the extension, citing concerns over the federal deficit.

Therefore the total number of Americans cut off from benefits could grow to 3.3 million by the end of this month if the impasse isn't resolved when Congress returns.