The Bureau of Labour released their June Employment Report this morning showing little sign of any improvement from the 8.2% unemployment rate throughout the United States.
Hopes were high in anticipation of the report, but the report revealed that only 80,000 net jobs have been made in the last month. This is not enough to keep up with the growth of the working population.
The service sector has been highly criticised, as employment figures in this sector have fallen by 10,000, whilst the manufacturing industry has been praised for its improvement, with 11,000 jobs created this month.
Local government teaching felt a particularly high loss, with a reduction of 100,000 jobs to 7.8 million jobs since last year’s report.
The weak trajectory of total job growth presented in the report is particularly worrying, with only 3,000 jobs created throughout America since May. Although there is some positive growth, these changes are insignificant. It is said that for any considerable change to be made to the market and by extension the country, a job boom is needed, and this report shows no evidence for one in the foreseeable future.
Total changes in employment, demographics and working hours are negligible. The racial demographics of the unemployed remain unchanged, with little change in figures for unemployed teenagers or part-time workers seeking full-time employment.
The news resulted in a dramatic fall in the American stock market as soon as the report was released, which has done nothing to help the situation. With this information comes a hope that Congress will make significant attempts to improve the economy in the short term, however with the Presidential and congressional elections dominating the minds of legislators, this seems unlikely.
The jobless, investors and traders alike are turning to the Federal Reserve; in light of such weak progress it is believed the Fed will be forced to take action.