Weekly Economic Digest

SLUGGISH LABOR MARKET RECOVERY CONTINUES WITH MODEST PRIVATE SECTOR EMPLOYMENT GAINS

Jul 02 2010

(See the BLUE BOX for the latest Key Economic Statistics.)
 
PRIVATE PAYROLLS EXPAND, BUT GAINS ARE OFFSET BY EXPECTED CENSUS LAYOFFS. The Bureau of Labor Statistics (BLS) reported that the number of employees on private sector payrolls grew by 83,000 in June, bringing the total number of private sector jobs added in the first six months of 2010 to 593,000 (see chart).  The increase was offset by the expected layoff of 225,000 temporary Census 2010 workers, leaving total nonfarm payrolls lower by 125,000 over the Chart - Monthly Change in Private Payrolls - June 2010 Updatemonth (read more here; see chart).

UNEMPLOYMENT EDGES DOWN IN JUNE.
The unemployment rate edged down 0.2 percentage point to 9.5 percent in June.  The jobless rate is now 0.6 percentage points below its peak of 10.1 percent reached in October 2009, and is at the lowest point in eleven months.  However, the drop in the unemployment was largely due to a steep decline in the labor force. The overall labor force participation rate fell 0.3 percentage point to 64.7 percent.  In June, 652,000 workers left the labor force while the number Americans looking for work fell by 350,000 to 14.6 million (read more here).

EMPLOYMENT OPPORTUNITIES REMAIN SCARCE.
The latest data from the Bureau of Labor Statistics show that there are 5 unemployed workers for every one job opening.  Despite the high unemployment rate, the Senate failed to extend unemployment insurance benefits, causing an estimated 1.7 million unemployed workers to lose benefits before the July 4th recess is over (read more here).

 

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