The Bureau of Labor Statistics (BLS) reported earlier today that there were only 18,000 new jobs created in June. As a result, the unemployment rate rose for the second straight month to 9.2%! Additionally, many economists thought we had reversed the historical crisis of 20 straight months of 9.4% or worse from May 2009 to January 2011. Unfortunately, we are edging ever closer to that terrible 9.4% rate. Furthermore, the real unemployment rate, if you include those who have either given up looking or are involuntarily working part-time (and are not included in the BLS numbers), is closer to 16.6% or 1 in 6 workers!
1. 25.4 million ( +.8 mil from past month)= 14.1 mil. Unemployed + 8.6 mil. Involuntarily working part-time + 2.7 mil. who are not even counted = 25.4 million workers who are either unemployed or underemployed or 16.6% of all workers! = 1 in 6 workers still unemployed or underemployed in the June BLS figures!
2. The recession has killed off 7.9 million jobs. Many of them are not coming back!
3. BLS said that the National Unemployment rate edged up .1% to 9.2% in June.
4. Caveat: 20 straight (May 2009 to January 2011) months of the unemployment rate being 9.4% or higher!
5. Illinois unemployment rate 8.8% in May= +.2% (Projected).
6. Gain of only 18,000 non-farm jobs in June.
7. The gains were: a) Professional and technical services gained 24,000 jobs in June (gained 245,000 jobs since a recent low in March 2010) b) Health Care which rose by 14,000 in June (Key: has averaged 24,000 added per month during the past 12 months) c) Mining added 6,000 in June (Key: has risen 128,000 since the low point of October 2009) and d) leisure and hospitality, which added 34,000 jobs in June (Key: has added 279,000 since a recent low in October 2009)!
8. The loser was government jobs, which continues to decline and was down 39,000 for the month!
9. How bad is it? a) At June’s pace of only 18,000 jobs created, it would take over 10 years to make up for all the jobs lost by the recession and b) A U.S. Bancorp study of 1004 U.S. companies with $10 mil. or less revenues showed: a) 70% have no plans to expand their staffs over the next 12 months and b) 78% believe that the U.S. economy is still in a recession!