Private businesses add fewer jobs than analysts expected yet unemployment rate drops

urkelThe unemployment rate dropped to 9.5 percent for the month of June even as the U.S. government dropped 225,000 Census jobs, showing yet another sign that the economy is facing a vulnerable recovery. The total net job loss for the money was 125,000. Private businesses added only 83,000 workers to their payrolls in June, far worse than analysts expected. But the Labor Department still lowered unemployment rate because 652,000 people out of work gave up on their job searches and left the labor force. People who are no longer looking for work aren’t counted as unemployed.

“The unemployment rate fell to 9.5 percent from 9.7 percent as the 301,000 decline in household employment was more than offset by a drop of 652,000 in the labor force, thus the rate fell not because of a pick up in job gains,’ Miller Tabak analyst Peter Boockvar told Fox Business Network. Hows that stimulus working out for you?

The nation has 7.9 million fewer private payroll jobs than it did when the recession began in December 2007.

All told, 14.6 million people were looking for work in June. Counting those who have given up their job searches and those who are working part time but would prefer full-time work, the underemployment rate edged down to 16.5 percent from 16.6 percent in May.

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July 2, 2010 · Filed Under economy


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