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Job growth slows in June Atlanta, GA

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Job growth slows in June

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Last month, job growth stalled dramatically in the United States, leading many analysts to predict that the equally slow growth that was constant throughout the first half of the year was indicative of a mini-recession instead of a mere “blip” in recovery, as many had hoped. This will likely not come as a shock to the Georgia residents who have continued to struggle with unemployment and debt despite the claims of a so-called recovery.

This week, the U.S. Department of Labor reported that the unemployment rate had climbed to a six-month high of 9.2 percent in June as payrolls increased by only 18,000, which was the lowest number of jobs added since September of 2010. The dismal report was compounded by news that the economy created about 45,000 fewer jobs in May and April than economists had previously believed, despite signs that the retail and manufacturing industries had begun to make a significant recovery.

Government jobs suffered the most significant cuts last month, as states have continued to grapple with insurmountable budget deficits. However, the stagnant growth was not limited to government jobs, but was spread across all sectors of the market. “This report has dashed hopes that the economy was about to accelerate again,” said economist Nigel Gault.

However, some analysts are remaining positive. They cite the motor vehicle industry, which is reportedly increasing production rates with the apparent end of the shortage of auto parts due to the recent earthquake in Japan.

“You have to look at the more recent data and they have been much more positive,” said economist Joel Naroff. “We haven’t seen the economy faltering further, instead we have seen the economy coming back.”

Source: Reuters, “Job growth stalls, setting back recovery hopes,” Lucia Mutikani, 8 July 2011

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