Only 32,000 Jobs Are Added in July

[Caution]

Yahoo! News - Only 32,000 Jobs Are Added in July

By JEANNINE AVERSA, Associated Press Writer

WASHINGTON - The nation's payroll growth slowed dramatically in July with a paltry 32,000 jobs being added_ a potentially troubling sign that the rough patch the economy hit in June was no aberration.

The unemployment rate, however, dipped down a notch to 5.5 percent last month, from 5.6 percent in June, the Labor Department (news - web sites) reported Friday. The new jobless rate was the lowest since October 2001.

The payrolls figure and the unemployment rate can sometimes go in different directions because they are derived from two separate statistical surveys.

Economists, however, look more closely at the payroll figure as a better barometer of the health of the jobs market. The 32,000 net jobs added in July represented the smallest gain in hiring since December and followed a revised gain of just 78,000 in June, even less than previously reported. May's payrolls also were revised down to show a gain of 208,000.

<snip>

[Yogi]

1. The unemployment rate.....

has drop because benefits have run out for me and millions of others. It doesn't mean things are getting better.

[Tandalayo_Scheisskopf]

2. U6...

The only REAL unemployment figure. The rest is Stupid Accounting Tricks.

[tritsofme]

6. How is U6 the real rate?

If you're going to play that game you expose yourself to the fact that it was marginally higher in July 1996 than it is now.

We have always considered U3 to be the official unemployment rate.

[CarolynEC]

3. Meanwhile, about those earlier figures...

Note also that the previous months' figures were revised downward... as usual.

Big number for the announcement. Er, um, smaller number that's slipped in later.

Associated Press:
"... The 32,000 net jobs added in July represented the smallest gain in hiring since December and followed a revised gain of just 78,000 in June, even less than previously reported. May's payrolls also were revised down to show a gain of 208,000."
http://www.nytimes.com/aponline/business/AP-Economy.html?hp

In all, they lopped 61,000 jobs off the two months' total.

Reuters:
"The Labor Department also cut its tally of job growth for May and June by a combined 61,000."
http://www.nytimes.com/reuters/business/business-economy-jobs.html

As for "the unemployment rate is lower" angle... well, duh. That's not a measure of improvement. That's a measure of despair. As Yogi noted, benefits are running out and some people have given up on ever finding a job at all.

[arwalden]

4. Can We Expect This Meager Gain To Be Revised DOWNWARD Also???

-- Allen

How many people have simply stopped looking?

[muriel_volestrangler]

5. dupe

of http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=102x732033

[wurzel]

7. Do you have to have been employed to be counted as unemployed?

I'm thinking of school and college grads. If they haven't found a job are they counted with the unemployed?

[Moderator]

8. Duplicate

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=102x732033