U.S. jobs engine sputtering
Economic data likely to be top of mind with voters in presidential campaign.
The Associated Press
Posted: Jul 6, 2012 9:11 AM ET
Last Updated: Jul 6, 2012 10:20 PM ET
A worker checks out job postings in in Menlo Park, Ca., in May. The American economy added 80,000 jobs in June (Paul Sakuma/Associated Press)
Related
Related Stories
U.S. employers added only 80,000 jobs in June, a third straight month of weak hiring that shows the economy is still struggling three years after the recession ended.
The unemployment rate was unchanged at 8.2 per cent, the Labor Department said in its report Friday.
The economy added an average of just 75,000 jobs a month in the April-June quarter. That's one-third of the 226,000 a month created in the first quarter. Through the first six months of the year, job creation is also trailing last year's pace.
"It's a disappointing report," said George Mokrzan, director of economics at Huntington National Bank in Columbus, Ohio. He said the job gains are consistent with sluggish economic growth.
A weaker job market has made consumers less confident. They have pulled back on spending, even though gas prices have plunged.
High unemployment could shift momentum to Mitt Romney, the presumptive GOP presidential nominee. An Associated Press-GfK poll released last month found that more than half of those surveyed disapproved of President Barack Obama's handling of the economy.
The economy is growing too slowly to lower the unemployment rate. Obama is expected to face voters with the highest unemployment rate of any president since the Great Depression, and the economy is the top issue for many voters.
The U.S. president was campaigning in Ohio and Pennsylvania on Friday, taking a stool at Akron restaurant Ann's Place to chat with locals about how policies like the auto bailout and his recently court-approved Obamacare health care plan are good for American workers.
Still, with an unemployment rate above eight per cent and signs of a sluggish economy on all fronts, the opportunity is there for Romney to make political hay.
Some good signs
Revisions to the job gains in April and May were little changed from the government's previous estimates.
There were some good signs in the report. The average work week grew to 34.5 hours from 34.4 in May, boosting many workers' paychecks. And average hourly pay rose 6 cents to $23.50. Hourly pay has increased 2 per cent in the past year and is ahead of inflation, which has fallen in recent months along with gas prices.
About one-third of the jobs gained in June were in temporary services. Manufacturing added 11,000, its ninth straight month of gains.
But growth in factory jobs slowed sharply in the second quarter compared to the first. Health care added 13,000 jobs and financial services gained 5,000. Retailers, transportation firms and government cut jobs.
With files from CBC NewsShare Tools
Top News Headlines
- Canadian on EI shut out amid foreign worker influx
- A jobless Canadian IT professional who is collecting employment insurance is upset because he now suspects several recent jobs he applied for went to temporary foreign workers. more »
- Can the Senate fire a senator?
- An expert on parliamentary rules says the Senate has the power to turf a senator from the chamber, as long as a majority approves the expulsion, and as long as there is cause. more »
- Harper chief of staff resigns amid Senate expense scandal
- Nigel Wright has resigned as Prime Minister Stephen Harper's chief of staff, following revelations he wrote a $90,000 cheque to repay living expenses claimed by Senator Mike Duffy. more »
- Jeep driver apologizes after stunt kills Edmonton woman
- A man claiming to be the driver of a Jeep that struck and killed a spectator at a charity event in Edmonton says he is sorry for what happened. more »
Must Watch
Latest Business Headlines
- 1 year later, Facebook stock remains below IPO price
- A year after Facebook's high profile IPO, investors are still skeptical about its prospects and the stock price is wallowing. more »
- IRS's integrity at stake in scandal over screening of conservative groups
- Unloved in the best of times, the Internal Revenue Service will have to scramble to convince U.S. lawmakers and the public that its intentions were pure, not partisan, when it subjected groups affiliated with the Tea Party movement and other conservative causes to special scrutiny. more »
- GM shares close above IPO price for 1st time in 2 years
- Shares of General Motors reached an important milestone on Friday, closing above their initial public offering price of $33 US for the first time in more than two years. The day wasn't bad for GM's rivals either, with Ford shares closing above $15 for the first time since May 2011 and Toyota, Honda and Nissan all hitting 52-week intraday highs. more »
- AECL to cost $236M more than expected this year
- A new report from the parliamentary budget officer shows Atomic Energy of Canada Ltd. continues to be a drain on the public purse and will cost an additional $236 million this year. more »
Lang & O'Leary Exchange
Markets
| Index | Last Trade | Change |
|---|---|---|
| TSX COMPOSITE | 12613.05 | 105.45 |
| DOW | 15354.40 | 121.18 |
| NASDAQ | 3498.97 | 33.73 |
| SP 500 | 1667.47 | 17.00 |
| TSX-VENTURE | 934.68 | 1.82 |
The data on this site is informational only and may be delayed; it is not intended as trading or investment advice and you should not rely on it as such.
- Remains found on murder suspect Millard's Ontario farm
- Petition looks to rename Victoria Day
- Vancouver man attacked, killed in Costa Rica
- Jeep driver apologizes after stunt kills Edmonton woman
- Rob Ford should resign if allegations true, councillors say
- Harper chief of staff resigns amid Senate expense scandal
- Missing Toronto woman's parents unfazed by Millard link
- Saudi coronavirus work stymied at Canadian lab
- Man charged in stabbings near Kingsway transit station

