“Unexpectedly”, we’re back at 9.2% unemployment
urea am glad we wasted all the money on Stimulus so we could stay below the promised 8% aren’t you?
U.S. employment growth ground to a halt in June, with employers hiring the fewest number of workers in nine months, dousing hopes the economy would regain momentum in the second half of the year.
Nonfarm payrolls rose only 18,000, the weakest reading since September, the Labor Department said on Friday, well below economists’ expectations for a 90,000 rise.
The unemployment rate climbed to a six-month high of 9.2 percent, even as jobseekers left the labor force in droves, from 9.1 percent in May.
So here we are in Recovery Summer II, huh? You know, I’d go through all the reasons for this but I think you know them pretty well by now.
The results, however, should be reviewed, because we’re suffering them because of this administration’s cluelessness, the Fed’s cluelessness, and the government’s over-regulation and war on business – not to mention the mounting debt. Oh, wait, I just went through all the reasons again, didn’t I?
"The message on the economy is ongoing stagnation," said Pierre Ellis, senior economist at Decision economics in New York. "Income growth is marginal so there’s no indication of momentum.
Gee, wish we’d been saying that for the last few months/years. As Dale has said for quite some time on our podcast, we’re looking stagflation directly in the eye and in the process of recreating the Japanese “lost decade” – except it is possible this may linger for more than a decade given our debt.
The report shattered expectations the economy was starting to accelerate after a soft patch in the first half of the year. It could prompt calls for the Federal Reserve to consider further action to help the economy, but Fed officials have set a high bar.
The U.S. central bank wrapped up a $600 billion bond-buying program last week designed to spur lending and stimulate growth.
"This confirms our view that the Fed will continue to keep rates on hold into 2012 and if weak employment continues it will be pushed out even further," said Tom Purcell, chief economist, RBC Capital Markets in New York.
Classic, obviously predictable (I mean, we did it) and inevitable given the way the problem was tackled.
Oh, btw, 10% is not at all impossible, given the continued policies of this administration.
Just saying’, so it won’t be considered “unexpected” if it happens.