Obamanomics Has Failed: Hiring Down, Unemployment Rises, Nation Stagflating
July 8th, 2011
Obamanomics Has Failed: Hiring Down, Unemployment Rises, Nation Stagflating
Published on July 8th, 2011 @ 10:03:30 am , using 434 words

CNN Money
NEW YORK (CNNMoney) -- The job market hit a major roadblock last month, as hiring slowed to a crawl and the unemployment rate unexpectedly rose.
The economy gained just 18,000 jobs in June, the government reported Friday, sharply missing most expectations and coming in even weaker than the paltry 25,000 jobs added in May.
It marked the weakest month since September, when the economy was still losing jobs.
"At first, when I heard it, I thought maybe they had announced the wrong numbers, they were so bad," said Robert Brusca of Fact and Opinion Economics.
Economists were expecting government job losses, but few had predicted that private businesses would pull the reigns back so tightly.
Private businesses added only 57,000 jobs in June - the weakest growth since May 2010. Earlier this year, businesses had been adding more than 200,000 jobs each month.
See which states have led the way in job creation
"You look at the charts for private sector growth and you could see, we were building a nice, steady crescendo," Brusca said. "All of a sudden the bottom fell out!"
June's jobs report follows an already dismal report from May. Economists, for the most part, were hopeful that June would be better, predicting about 125,000 jobs added during the month, according to a CNNMoney survey.
But instead, the June jobs report brought bad news on nearly every front.
The government revised the jobs numbers for April and May both downward, average weekly hours and wages fell, and the unemployment rate rose to 9.2% from 9.1% in May.
Help, I'm (under)employed!
Meanwhile, the total number of unemployed people rose to 14.1 million.
A whopping 44% of those folks, or 6.3 million people, have been unemployed for 6 months or more.
The underemployment rate, which includes people who want to work full-time but are forced to work part-time, rose to 16.2%, its highest rate since December.
Overall, the job market is still far from a full recovery. The economy needs to add about 150,000 jobs a month just to keep pace with population growth.
So far, the nation has only gained back about a fifth of the 8.8 million jobs lost during the recession.

Speaking via his first-ever Twitter town hall earlier this week, President Obama admitted job creation hasn't been as robust as previously hoped, but defended his administration against Republican claims that stimulus funding did little to create jobs.
His Council of Economic Advisors estimates that the Recovery Act saved at least 2.4 million jobs that would have otherwise been lost if not for the stimulus. ![]()





