The numbers DON'T LIE...Bush only cares about Iraq...and Sadaam....oooops....missed him again
LOSS OF A MILLION JOBS IN THREE MONTHS!!
Jobless Rate Hits 9-Year High of 6.4 Pct.
By LEIGH STROPE, AP Labor Writer
WASHINGTON - The nation's unemployment rate shot up to 6.4 percent in
June, the highest level in more than nine years, in an economic slump that
has added nearly a million people to jobless rolls in the past three months.
Businesses slashed 30,000 jobs in June for the
fifth straight month, with cuts heavily
concentrated in the nation's factories, the Labor
Department (news - web sites) reported
Thursday.
The 0.3 percentage point increase from May's
6.1 percent rate was the largest
month-to-month rise since the Sept. 11, 2001
terror attacks. That surprised analysts, who
predicted a smaller rise to 6.2 percent. The last
time the overall rate was higher was in March
1994.
Wall Street reacted with stocks falling. In
afternoon trading, the Dow Jones industrial
average was down 61 points and the Nasdaq
dropped by 10 points.
The poor economy and swelling unemployment
could pose problems for President Bush (news -
web sites) next year in his re-election bid. But
tax cuts recently passed by the
Republican-controlled Congress are starting to
take effect and will bolster job prospects, the
administration has argued.
"Its effects will be felt by America's working
families, seniors and small business owners
later this month, as they begin receiving tax
rebates and larger paychecks," said Labor
Secretary Elaine Chao. "As this stimulus builds
momentum, we expect to see more new jobs
created and more out of work Americans
receiving a paycheck again."
At the White House, press secretary Ari
Fleischer (news - web sites) said that while the
economy experienced a "short and shallow recession, we are also an
economy that is having a slow recovery."
Democrats are determined to make the economy a big issue in next year's
elections. "The verdict is in: The Republicans' multi-trillion dollar failed
economic policy is one the greatest disasters for working Americans in a
decade," said Sen. Jon Corzine, D-N.J., chairman of the Democratic
Senatorial Campaign Committee.
While recent economic indicators point to an economy struggling toward
recovery, the latest report demonstrated that America's job market was still
very much in a state of recession last month.
"It's pretty bad, there's no denying that," said Ken Mayland, president of
ClearView Economics.
Since March, unemployment has increased by 913,000. Two million people
were unemployed for 27 weeks or more last month, an increase of 410,000
since the start of the year.
Another factor behind the increase in the overall civilian unemployment rate
was the increase in the number of people seeking work in June. Optimism
about an economy rebound led over 600,000 people to resume their search
for work.
Because the government calculates the overall unemployment rate based on
a survey of American households, and because the lackluster economy
wasn't producing enough jobs to accommodate an increasing number of
jobseekers, that rate increased significantly.
"That suggests a combination of better prospects, getting the war behind
us, a better stock market — just more enthusiasm about economic
prospects — is causing people to re-enter the labor force," Mayland said,
adding that the jobless rate should start to stabilize.
"It would be my bet that we're at the high-water mark," he said.
Manufacturing led in payroll cuts last month, with 56,000 jobs lost. Since
July 2000, the nation's factories have cut 2.6 million jobs.
That sector has been the weakest link in the economy's ability to get back
to full speed. Slack demand at home and abroad and competition from a
flood of imports have throttled back production.
Construction jobs helped offset manufacturing losses somewhat last
month, with the fourth straight gain in hiring. Construction has added
101,000 jobs since February, reflecting strength in residential building.
The mortgage boom, stoked by record low rates, has been the bright
spot in the dismal economy. People are buying new homes and
refinancing their old mortgages. The extra cash from refinancing
combined with solid home-value appreciation have kept consumer
spending afloat.
Other hiring gains last month were in health care, leisure and hospitality
and temporary employment services.
In a separate report, new claims for jobless benefits rose last week to
430,000, an increase of a seasonally adjusted 21,000 from the previous
week's revised 409,000 claims.
The more stable, four-week moving average of claims, which smooths
out weekly fluctuations, dropped to 425,000. That was the lowest level
since April 5.
CC |
