CNBC is reporting that the U.S. economy created only 80,000 jobs in June, keeping unemployment at 8.2 percent for the second month in a row. About one-third of the jobs gained were in temporary services; typically a good sign at the beginning of a recovery, but not so much three years in to it.
With June’s lackluster jobs report, Obama now must hope to see positive improvement in the four remaining months leading up to the elections if he stands any chance at using the economy as any part of his campaign arguments.
The Bureau of Labor Statistics said private payrolls increased 84,000, while the government lost 4,000 jobs.
With yet another month of weak employment growth, the second quarter marks the weakest such period in two years.”
May’s jobs report showed growth of only 77,000 jobs, and the past three months are averaging gains of only 75,000 jobs. To keep up with population growth, America needs to add somewhere in the range of 125,000 to 150,000 jobs per month.
This is a stark contrast to the 226,000 jobs per month average of the first quarter of 2012. The U.S. is still trailing last year’s numbers through the first half of the year.
On a positive note, manufacturing did, however, show modest gains: payrolls improved by 11,000.
A poll of economists conducted by Bloomberg showed expectations of a gain of 100,000 jobs, but clearly this report falls short of those expectations once again. This miserable report could cause the Federal Reserve to take further action to jumpstart the economy; last month they downgraded their 2012 economic outlook by changing their growth prediction from 2.4 percent to 1.9 percent.
This is not good news for Obama. According to Real Clear Politics average of 7 different polls, Obama holds only a 2.6 point lead – virtually a statistical tie. The latest Gallup poll shows that 47% of Americans disapprove of the job President Obama is doing.
Don’t forget about Barack Obama’s whirlwind change in immigration policy either. According to Ed Morissey of Hot Air, “The pledge to issue work permits means that we may potentially add 1.2 million workers to the workforce over the next two years. That means we will have to add jobs at a rate closer to 200,000 per month just to keep up with population growth and the policy change.”
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