Dismal Jobs Report Reflects Economic Decline
by Stephen Lendman
July 7, 2012
Years ago, America's economy was a job creation machine. Today it's rusted, wheezing, and sputtering on the way to collapsing.
In June, America added 80,000 jobs. U-3 unemployment remained at 8.2%. Based on 1980 calculations, it tops 22%.
Most jobs created are part-time, low-pay temp ones. The nation's manufacturing base largely exists offshore. So do many high-pay service jobs.
Expectations were missed for the fourth straight month. Typically at this stage of the economic cycle, around a quarter million monthly jobs are created. Moreover, 36 months after an alleged recovery, U-3 unemployment is 3.6% below the pre-recession high.
The household survey adjusted on a comparable basis to the headline payroll one showed 153,000 June job losses. It was the third decline in the past four months. In total, 666,000 jobs are gone.
Average hours worked fell to 0.4% year-over year down from 4.3% in Q 1. It suggests downward GDP forecast revisions anywhere from 1.5% to contraction.
The University of Michigan "favorable (employment) news" index plunged to 27 in June from 34 in April and May. In March it was 38.
It reached a 2012 low. Since 1980, a decline of seven points month-over-month occurred only six times. In contrast, unfavorable employment new rose five points to 28. It hit a yearly high.
The Conference Board's "jobs hard to get" index rose to 41.5 in June. It reflected a five-month high. In May it increased to 40.9 from 38.1 in April. The ISM jobs index fell slightly from 56.9 to 56.6 month-over-month.
Initial jobless claims averaged 387,000 in June. They rose 3% over May. In the past decade, months in which they increased this much saw declining payrolls over 70% of the time.
Average hours worked fell to 0.4% year-over year down from 4.3% in Q 1. It suggests downward GDP forecast revisions anywhere from 1.5% to contraction.CONTINUE: [link to globalresearch.ca]