Saturday, July 9, 2011

US Unemployment Rate Stagnates

The U.S. growth was weaker: for the second consecutive month, U.S. companies have not created jobs. According to the data of the Ministry of Labour yesterday the new employees were just 18 thousand in the month of June, the worst figure since September, a number far from 125 thousand to analysts who had expected. And above all away from wage increases of 400 thousand new employees should be observed at this stage of recovery, after the stimuli unprecedented both in terms of the tax money.

It was also revised downwards the figure for the previous month, in May the new assumptions were only 25 thousand, half of the 50 thousand who had announced the ministry. The new statistics affect the rate of unemployment, which rose to 9.2 percent, an "unacceptable level" according to the White House. And of course the political danger for Barack Obama. "The private sector - said the president - has created more than two million jobs over the past 16 months. But the recession has cost us eight million people. There is a big void to fill and our economy does not create enough jobs for all who seek Him. "

The finding has surprised experts who expected an acceleration in employment after the setback in May. And yesterday rather have seen profound weaknesses in areas such as construction, finance and the employment agency. On the horizon there are worrying signs in the coming months, some important indicators such as wages and the length of the workweek, which typically grow as companies started to recruit again, are declining.

The average hourly earnings fell by one U.S. cent, to $ 22.99, while in the last 12 months wages rose by only 1, 9 percent. Why? According Omair Sharif, an analyst at Royal Bank of Scotland, companies are afraid to take: "The perception is that the economy runs on the edge and then takes some bad news and the optimism disappears."

Despite this, all places of jobs created in June come from the private sector, 57 thousand, but are not yet many of the more than 200 thousand new jobs in the first half of the year, from February to April. In tow are the field of healthcare, entertainment and hospitality while in the manufacturing sector were added just 5 thousand people. In the public - with many U.S. states face serious budget crisis - employment fell by 39 thousand units, the eighth consecutive drop.

The American economy needs to create at least 150 thousand new jobs a month to keep pace with population growth . The number of unemployed is now estimated at 14.1 million, with 6.3 million who are looking for a place for more than six months.

But for Barack Obama this is not the only problem. The president is struggling with the problem of reducing the federal deficit. Tomorrow there will be another meeting at the White House from key Democrats and Republicans. And maybe the new finding could change the tone of the debate in Washington. With intervention from the Rose Garden of the White House, Obama has asked Congress to extend tax cuts launched last December and to accelerate the passage of commercial agreements and legislative measures that could boost employment, particularly from the banking and infrastructure on patent law. "We must give space to new ideas," said Obama, for whom "the road to recovery is still long."

For the Republicans, however, the weakness in the labor market is a direct responsibility of the President. The Speaker of the House John Boehner pointed his finger at some of the warhorses of Obama as the ban on oil drilling and "too many" rules and regulations which he said cut the legs to entrepreneurs.


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