Saturday, July 3, 2010

U.S. Employment Report: Major sectors are still not creating many new jobs

Though U.S. economy is on the path of recovery, it is far from that if one look at the current job market situation in the U.S.

U.S Labor Department published the employment report of 2010 and though the report says that unemployment rate has lowered to 9.5% from 9.7%, this happened as 6,50,000 people have been removed from the labor force. These people have entirely given up looking for jobs.

As per the June employment report, there was a net loss of 1,25,000 jobs and most these were temporary Census jobs that were created in May. The private sector only created about 83,000 jobs and half of those jobs belong to the vacation industry.

The employment report also says that U.S. at present is 7.3 million jobs shorter compared to the time when the Great Depression began. Major economic sectors including manufacturing, construction and financial institutes are still not hiring much and the employment report revealed that over all recruitment decreased in these sectors.

As per the ADP payroll report only 13,000 jobs have been created mostly by large corporation. Mid-level companies only created 3,000 new jobs and small businesses which have been vital in creating new jobs in the U.S. failed to create new jobs

Overall, the condition is not so bright and this would be a big blow to the Obama administration.

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