Unemployment creeps up to 9.5%

The nation’s unemployment woes continued in June as the rate moved up a tenth of a percentage point to 9.5%.  The US lost jobs across all sectors, with the exception of public employment in government, education, and health industries.  Long-term unemployment increased to 30% of the total:

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Nonfarm payroll employment continued to decline in June (-467,000), and the unemployment rate was little changed at 9.5 percent, the Bureau of Labor Statistics of the U.S. Department of Labor reported today.  Job losses were widespread across the major industry sectors, with large declines occurring in manufacturing, professional and business services, and construction. …

In June, unemployment rates for the major worker groups–adult men (10.0 percent), adult women (7.6 percent), teenagers (24.0 percent), whites (8.7 percent), blacks (14.7 percent), and Hispanics (12.2 percent)–showed little change.  The unemployment rate for Asians was 8.2 percent, not seasonally adjusted.

Other than government jobs, the situation continues to look bleak:

Employment in manufacturing fell by 136,000 over the month and has declined by 1.9 million during the recession.  Within the durable goods industry, motor vehicles and parts (-27,000), fabricated metal products (-18,000), computer and electronic products (-16,000), and machinery (-14,000) continued to lose jobs in June.  Since the recession began, employment in motor vehicles and parts has declined by 335,000, or about one-third.

In June, employment in construction fell by 79,000, with losses spread throughout the industry.  Since the start of the recession, construction employment has fallen by 1.3 million.  Mining employment fell by 8,000 in June, about in line with the average monthly decline since its recent peak in October 2008.

Employment in the professional and business services industry declined by 118,000 in June.  This industry has shed 1.5 million jobs since an employment peak in December 2007.  Within this sector, employment in temporary help services fell by 38,000 in June; this industry has lost 848,000 jobs since the start of the recession.

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Clearly, the nation is heading in the wrong direction.  There isn’t a single sign of job recovery in this latest report despite four months of Porkulus spending.  Not one single sector except for government shows job growth, or even a hint of it.

Three months ago, Obama bragged that his stimulus had begun to create a “rush” to hire construction workers.  Since then, the construction industry has lost over 120,000 jobs, and this month’s report shows that trend accelerating at a season when construction should normally be hiring.

Porkulus has utterly failed, as has the Obama administration’s fiscal policies.  Businesses have conserved capital in the face of massive new taxes and costs associated with Obama’s stated fiscal policies, such as cap-and-trade, foreign-income taxation, and the higher interest rates that will spring from the massive deficits Obama plans to create.  The capital necessary for growth won’t appear in the market under these conditions, as we have clearly seen.  When will the media begin to hold this administration responsible for Obama’s economy-killing agenda?

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