June Jobs Report Still Gloomy, Only 80,000 Jobs Added

Copyright 2012 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.


By Christopher S. Rugaber


WASHINGTON (AP) -- U.S. employers added only 80,000 jobs in June, a third straight month of weak hiring that shows the economy is struggling three years after the recession ended.

The Labor Department said Friday that the unemployment rate was unchanged at 8.2 percent. The economy has added just 75,000 jobs a month in the April-June quarter. That's one-third of 226,000 a month created in the first quarter. Job creation is also trailing last year's pace through the first six months of 2012.

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For the first six months of the year, U.S. employers added an average of 150,000 jobs a month. That's fewer than the 161,000 a month for the first half of 2011. And it shows that the job market is weakening.

"It's a disappointing report," said George Mokrzan, director of economics at Huntington National Bank in Columbus, Ohio. He said the job gains are consistent with sluggish economic growth.

Stock futures fell modestly after the report came out. Dow Jones industrial average futures were down 24 points before the report at 8:30 a.m., and were down 76 points minutes later.

Yields for government bonds sank, an indication that investors were putting money into the Treasury market. The yield on the 10-year U.S. Treasury note was 1.59 percent just before the report and 1.56 percent after it came out.

A weaker job market has made consumers less confident. They have pulled back on spending, even though gas prices have plunged since early spring.

High unemployment could shift momentum to Mitt Romney, the presumptive GOP presidential nominee. An Associated Press-GfK poll released last month found that more than half of those surveyed disapproved of President Barack Obama's handling of the economy.

Obama is expected to face voters with the highest unemployment rate of any president since the Great Depression, and the economy is the top issue for many voters.

The June job figures could also prompt the Federal Reserve to take further action to try to boost the economy. The Fed last month downgraded its economic outlook for 2012. It predicted growth of just 1.9 percent to 2.4 percent. And it doesn't expect the unemployment rate to fall much further this year.

John Silvia, chief economist at Wells Fargo, said he didn't think Friday's report would prod the Fed to launch a new effort to boost growth after its next policy meeting at the end of this month.

But Silvia said if the job market doesn't improve over the next couple of months, the Fed might launch a third round of bond buying at its September meeting. Bond buying by the Fed is intended to lower long-term interest rates to encourage borrowing and spending.

"Most firms can achieve their output target with their existing labor force, so they are just not hiring," Silvia said.

Silvia said the June job growth is consistent with annual economic growth below 2 percent. Wells Fargo is forecasting growth in the April-June quarter at 1.5 percent, weaker than the 1.9 percent growth in the first quarter.

Such growth is too weak to lower the unemployment rate.

Revisions to the job gains in April and May were little changed from the government's previous estimates.

There were some good signs in the report. The average work week grew to 34.5 hours from 34.4 in May, boosting many workers' paychecks. And average hourly pay rose 6 cents to $23.50. Hourly pay has increased 2 percent in the past year and is ahead of inflation, which has fallen in recent months along with gas prices.

About one-third of the jobs gained in June were in temporary services. Manufacturing added 11,000, its ninth straight month of gains.

But growth in factory jobs slowed sharply in the second quarter compared with the first. Health care added 13,000 jobs, and financial services gained 5,000. Retailers, transportation firms and government cut jobs.


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Filed under: Unemployment Rate

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golfer939

We're still trying to repair a economy that was destroyed by the last Republican administration. Why would anyone even consider voting in a Republican, especially somelike Romney. He has done nothing but ship jobs out of the US. Check the record of the Bain Corp.

July 06 2012 at 6:17 PM Report abuse rate up rate down Reply
DENNIS

80,000 created ---- ummm how many were lost??????

July 06 2012 at 5:28 PM Report abuse rate up rate down Reply
teltech544

The Labor Department said Friday that the unemployment rate was unchanged at 8.2 percent. Because we cannot report the real unemployment rate this close to the election. We have to get Osama re elected so the people can have four more years of hoping for change. (Amazing how easily duped Americas are.)

July 06 2012 at 5:10 PM Report abuse +2 rate up rate down Reply
rich lapinski

more status quo from the white house, bho talks like broken record.

July 06 2012 at 5:09 PM Report abuse +1 rate up rate down Reply
SCOTT !!!!!!!!

Now HP This should be the HEADLINES instead of hiding it.

July 06 2012 at 5:00 PM Report abuse rate up rate down Reply
HEY YOU

The presidents policies have done absolutely nothing except cost the Country some freedoms, lots of debt, disrespect to the position, more government control and increased corruption!! Anyone who thinks otherwise is in denial! There are not enough jobs for the citizens of America but let's open the borders to everyone and take care of their personal needs, with the monies that TRUE Americans PAID in taxes & ss!!! I do agree that only idiots believe that the economy will become robust in 2012 lol!!

July 06 2012 at 4:52 PM Report abuse +2 rate up rate down Reply
Mike

Gop policies wrecked the American economy at the end of '08, and millions of American jobs were lost at the hands of the 'job creators' in '08 and '09. The President's policies have brought America back and only an idiot can believe that the American economy becomes robust by 2012.

July 06 2012 at 3:48 PM Report abuse -3 rate up rate down Reply
1 reply to Mike's comment
SCOTT !!!!!!!!

Wasn't this suppose to be the Obama recovery? He had a Democratic Congress to work with and he still has FAILED. HE himself send "If in three years things aren't any better then I will be a one term President".

July 06 2012 at 5:02 PM Report abuse +2 rate up rate down Reply
delawarejack

Obama .. democrats ... & liberal news media newest claims for BO Never taking any responsibility for America's calamitous economy ..... " I ran out of gas. ... I had a flat tire.... I didn't have enough money for cab fare.... My tux didn't come back from the cleaners.... An old friend came in from out of town.... Someone stole my car..... There was an earthquake.... A terrible flood..... Locusts! .....IT WASN'T MY FAULT, I SWEAR TO GOD!

July 06 2012 at 3:01 PM Report abuse +2 rate up rate down Reply
1 reply to delawarejack's comment
DENNIS

But at least he isnt blaming Bush now. He simply blames all Reps

July 06 2012 at 5:30 PM Report abuse rate up rate down Reply
linmk2

Over the years "we the people" have been asked the question; "are you better off today than you were four years ago?" In my case, regardless if there was a Republican or Democrat sitting in the Oval Office, the answer was, I'm the same. I am a degreed professional and consider myself to be middle-class. I own a home, pay taxes, and while nowhere close to wealthy, I have been able to have the things I want without being mired in an unsurmountable pile of debt. Being the same, was not a bad thing. Today, my answer is a resounding NO. I've been unemployed for months, without so much as a single interview. I have no faith in the current President or the sitting Congress! All of these people need to be voted out of office. Can anyone honestly say they are better off now, than four years ago? What has been accomplished? Well, a great deal of the President's energy was spent trying to get a health care bill passed. Since I have a great deal of free time of my hands, I read all 2000+ pages of the bill. A bill that many of our elected Congressmen admit they did not read fully, yet cast a Yea vote. I will be the first to admit, that parts of the bill do indeed have merit and I applaud them. However, on balance, the bill has many parts to it that the public, I'm sure, are unaware. I urge every American citizen to read this bill in full before proclaiming it to be the best thing since sliced bread. The devil is always in the details. On other fronts, I can't think of anything positive that has happened during the current Administration. You can only blame former Presidents just so long. At what point does one take responsible for their actions? As for me, since I'm certainly not better off than I was four years ago, I'm going to vote in November to "clean house" If the wine is sour, you throw it out.

July 06 2012 at 2:19 PM Report abuse +4 rate up rate down Reply
jsmith3244

The Bush Tax Cuts for the wealthiest Americans are still in place. Those wealthiest Americans are receiving those tax cuts specifically because those wealthiest Americans are the job creators, at least according to the GOP. How is it possible that the Bush Tax Cuts remain in place and yet, not only did this nation enter into the deepest Economic tragedy since the Great Depression under W's grand tax cut, Wall Street deregulatory plan, but those job providers still don't seem to be living up to their Republican touted 'job creators' expectations? For those of you who believe that Romney is a solution, I suggest that you look at his economic plans for a Romney Presidency....it's a return to the W. Bush plan, the exact same plan that benefits the wealthiest Americans, fails our Nation and 90% of our citizens. For the GOP, it's Party first, business profits second, the Nation's needs third and American citizens and families last....until they need us for their next war. As for facts, compare Obama's last three years of job growth to Bush's last three years. Compare the Dow Jones 7000 in 2008 to today's 12800. Money spent on behalf of the American people is a debt this Nation is obligated to accept during hard times to assist its citizens in their time of need. Republicans don't believe in that notion any more than they understand or care about Medicare, Social Security or the recent Health Care Law. Republicans don't care about you, do not care about your problems and certainly are not interested in this Nation for any other reason than to create wealth for themselves. Romney is not a solution: Newt, "He's a liar," Wall Street Journal, "He's stupid," and Santorium, "Romney is the last Republican candidate capable of facing and defeating Obama. He's the author of Obama's Health Care Plan that deserves to be called Oromney Care".

July 06 2012 at 2:12 PM Report abuse -2 rate up rate down Reply
1 reply to jsmith3244's comment
DENNIS

There we go, blame it on Bush. Dont take into account that Obama has been office nearly 4 years now and could have changed the tax cuts anytime he wanted during the first 2 years. Why didnt he??? How about having someone in office that simply understand business. Someone that might get the companies to start investing in this nation again. Maybe Romney can. Maybe he cant. But we do know that this current administration cant.

July 06 2012 at 5:38 PM Report abuse rate up rate down Reply

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