US Employers offering fewer jobs than expected
August 4, 2007
In what appears to be a setback for the economic growth the US has seen in recent months, unemployment rate has risen to the highest level since the beginning of the year.
There is now a 4.6% unemployment rate nationwide for the month of July, which sets it equal to the unemployment rate in January. These are disappointing figures that will not ease the worries that many are having over the economy.
These fears have been prompted primarily by the country’s mortgage sector that has been shaking markets across the world for quite sometime
Some have stated concerns that sub-prime lending problems and credit jitters may continue to push the unemployment rate further down as it has not quite yet had an impact according to experts.
With market confidence at an all time low, many have suggested that lack of fresh investment as one cause of the situation, with companies too nervous to incur increasing expenses at this time.
The employment pace in July had been the slowest since the month of February when only 90,000 jobs had been added.
In recent months job growth had been heavily supported by the service sector, which had 104,000 job added. The industry as a whole, however, has had 12,000 positions removed.
The Labor Department has stated that there are now 6,000 fewer jobs created for June. Only one month earlier, 188,000 jobs had been created – this was 2,000 fewer than what had been estimated.
The US economy overall has grown by 3.4% between March and May but was put to a stop in June. Although this was faster than what had been expected, more recent economic indicators show that spending of consumers and home building is on a decline, which would suggest ongoing economic distress beneath the surface.
Comments
Got something to say?
Advertisement
