The “recovery” is flat-lining. The employment report for June shows the continuing bad news. I’ll let CalculatedRisk give us the facts:
From the BLS:
Nonfarm payroll employment was essentially unchanged in June (+18,000), and the unemployment rate was little changed at 9.2 percent, the U.S. Bureau of Labor Statistics reported today. Employment in most major private-sector industries changed little over the month. Government employment continued to trend down.
The change in total nonfarm payroll employment for April was revised from +232,000 to +217,000, and the change for May was revised from +54,000 to +25,000.
The unemployment rate increased to 9.2% (red line).
The current employment recession is by far the worst recession since WWII in percentage terms, and 2nd worst in terms of the unemployment rate (only the early ’80s recession with a peak of 10.8 percent was worse).
This was very weak and well below expectations for payroll jobs, and the unemployment rate was higher than expected (both worse). A terrible report.
Although the Wall Street types and other analysts “expected” a better report, this really isn’t surprising. What it shows is the effect of fiscal policy. For over a year now, the actual effect of fiscal policy has been contractionary. Despite the misleading rhetoric of the Republicans, the Tea Party types, and the President, government spending has not been increasing for at least a year. The stimulus is over. It was done awhile ago. And it wasn’t much of a stimulus anyway relative to the scale of the problem. In fact, the federal government surge in spending in 2009, the so-called “stimulus” wasn’t really a stimulus. It was an attempt to limit and delay the damage from massive state and local government spending cuts.
You would think that month-after-month of poor employment and job reports like we’ve seen this year would cause somebody in official Washington to be concerned. You would be wrong. Instead, the talk is all about how to cut spending further, faster, and deeper. Apparently 9.2% unemployment rate, no real increase in the number of employed, and 545,000 new unemployed people is just fine and dandy with official Washington.