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US adds 195,000 new jobs in June but unemployment stays at 7.6% US adds 195,000 new jobs in June but unemployment stays at 7.6%
(about 3 hours later)
The US added 195,000 new jobs in June, beating expectations but leaving the unemployment rate unchanged at 7.6%, the Labor Department said on Friday. The headline figure was better than the 160,000 that had been forecast by economists but still relatively weak. The US added 195,000 new jobs in June, beating expectations but leaving the unemployment rate unchanged at 7.6%, the Labour Department said Friday.
The US will need to add more than 200,000 jobs a month if it is to reduce the overall unemployment rate. In the 12 months to June, the monthly gain has averaged 182,000. But there are signs that the jobs market continues to improve and that previous months may have been better than expected. In May, the Labor Department reported that the US added 175,000 jobs, just above the median forecast in a Reuters poll. That figure has now been revised up to 195,000. April's initial job growth estimate of 149,000 new jobs has been revised up to 199,000. The headline figure was better than the 160,000 that had been forecast by economists but still remains relatively weak.
Last month the Federal reserve chairman, Ben Bernanke, said the US economy was broadly improving but that Washington's budget cuts were holding back the recovery. Some business leaders and Republicans also argue that the imposition of President Barack Obama's new healthcare laws is also slowing hiring. The US will need to add more than 200,000 jobs a month if it is to reduce the overall unemployment rate. In the 12 months to June, the monthly gain has averaged 182,000. But there are signs that the jobs market continues to improve and that previous months may have been better than expected.
In May, the Labour Department reported the US added 175,000, just above the median forecast in a Reuters poll. That figure has now been revised up to 195,000. April's initial job growth estimate of 149,000 new jobs has been revised up to 199,000.
Last month, Federal reserve chairman Ben Bernanke said the US economy was broadly improving but that Washington's budget cuts were holding back the recovery. Some business leaders and Republicans also argue that the imposition of president Barack Obama's new healthcare laws is also slowing hiring while Democrat's argue Republican-backed spending cuts are hurting the economy.
Responding to the latest monthly figures, Alan Krueger, chairman of the White House's council of economic advisers, said: "In the four years since the recession ended in June 2009, the economy has added 5.3m jobs, thanks to the resilience of the American people and policies like the Recovery Act, which helped bring the recession to an end and put us on the path to recovery. With the recovery gaining traction, now is not the time for Washington to impose self-inflicted wounds on the economy."
But opponents to President Obama said his policies were holding back further growth in the jobs market.
Republican House speaker John Boehner said: "There's some good news in this report, but economic growth is still tepid, the unemployment rate is far too high, and the president continues to promote policies that undermine robust job creation. Just look at the last few weeks: the president admits that his health care law is a drag on businesses; he threatens to veto a bill based on his own plan to make paying for college easier, then watches quietly as Senate Democrats let interest rates double; and he makes up new reasons to delay the Keystone pipeline in a speech about imposing a national energy tax. Imagine how many jobs would be created if the president stopped trying to expand government and started working with Republicans on policies that create sustained economic growth and expand opportunity for all Americans."
The Bureau of Labor Statistics, which compiles the report, said leisure and hospitality added 75,000 jobs in June. Monthly job growth in this industry has averaged 55,000 in 2013, almost twice the average gain of 30,000 per month in 2012. Employment in professional and business services rose by 53,000 in June.The Bureau of Labor Statistics, which compiles the report, said leisure and hospitality added 75,000 jobs in June. Monthly job growth in this industry has averaged 55,000 in 2013, almost twice the average gain of 30,000 per month in 2012. Employment in professional and business services rose by 53,000 in June.
Employment in most other major industries, including mining and logging, construction, manufacturing and transportation and warehousing, showed little change in June. The government continued to cut jobs during the month, shedding another 5,000 positions to make up a total of 65,000 in the last 12 months. Employment in most other major industries, including mining and logging, construction, manufacturing, and transportation and warehousing, showed little change in June. The government continued to cut jobs during the month, shedding another 5,000 positions to make up a total of 65,000 in the last 12 months.
The number of long-term unemployed (those left jobless for 27 weeks or more) was essentially unchanged at 4.3 million, accounting for 36.7% of the unemployed. Unemployment rates for teenagers (24%), black people (13.7%), and Hispanics (9.1%) remained stubbornly high. The number of long-term unemployed (those left jobless for 27 weeks or more) was essentially unchanged at 4.3m, accounting for 36.7% of the unemployed. Unemployment rates for teenagers (24%), black people (13.7%), and Hispanics (9.1%) remained stubbornly high.
On Wednesday, the payroll processor ADP said the private sector had added 188,000 new jobs from May to June. The previous month's tally was revised down marginally from 135,000 to 134,000. The rise was spread across the economy, according to ADP. Goods-producing employment rose by 27,000 jobs in June, its largest increase in four months. Construction payrolls rose by 21,000 in June, its biggest gain since January, and manufacturers added 1,000 jobs following a two-month decline. Dan Greenhaus, chief global strategist at BTIG called the latest figures a "darn good report". In a note to investors he highlighted a 0.4% rise in average hourly earnings rose, "tied for the highest rate of increase during the entire recovery. Finally, yes the unemployment rate did hold steady but it did so for all the right reasons. The number of unemployed people in the economy barely budged while the number of people working rose considerably," wrote Greenhaus.
Mark Zandi, chief economist of Moody's Analytics, which helps compile the ADP report, said: "The job market continues to gracefully navigate through the strongly blowing fiscal headwinds. Healthcare reform does not appear to be significantly hampering job growth, at least not so far. Job gains are broad based across industries and businesses of all sizes." On Wednesday payroll processor ADP said the private sector had added 188,000 new jobs from May to June. The previous month's tally was revised down marginally from 135,000 to 134,000.
The rise was spread across the economy, according to ADP. Goods-producing employment rose by 27,000 jobs in June, its largest increase in four months. Construction payrolls rose by 21,000 in June, its biggest gain since January and manufacturers added 1,000 jobs following a two-month decline.
Mark Zandi, chief economist of Moody's Analytics, which helps compile the ADP report, said: "The job market continues to gracefully navigate through the strongly blowing fiscal headwinds. Health care reform does not appear to be significantly hampering job growth, at least not so far. Job gains are broad based across industries and businesses of all sizes."