Tuesday, July 29, 2014         

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U.S. economy adds jobs; unemployment at 7.6%

By Associated Press


associated press@Caption1:U.S. employers added a robust 195,000 jobs in June and many more in April and May than previously thought. A sign seeking drivers is posted outside the Pearl, Miss., customer service center for Central Transport, a long-haul transport trucking company.

WASHINGTON » U.S. employers are sending a message of confidence in the economy — hiring more workers, raising pay and making the job market appear strong enough for the Federal Reserve to slow its bond purchases as early as September.

The economy gained a robust 195,000 jobs in June and many more in April and May than previously thought. The unemployment rate remained 7.6 percent in June because more people started looking for jobs — a healthy sign — and some didn't find them. The government doesn't count people as unemployed unless they're looking for work.

The Labor Department's report Friday pointed to a U.S. job market that's showing surprising resilience in the face of tax increases, federal spending cuts and economic weakness overseas. Employers have added an average 202,000 jobs for the past six months, up from 180,000 in the previous six.

The job growth is being fueled in part by consumer spending and the housing recovery. Consumer confidence has reached a 5-1/2-year high and is helping drive up sales of homes and cars. Hiring was especially strong in June among retailers, hotels, restaurants, construction companies and financial services firms.

"The numbers that we're seeing are more sustainable than we thought," said Paul Edel­stein, U.S. economist at IHS Global Insight, a forecasting firm.

"We're seeing better job numbers, the stock market is increasing and home prices are rising."

Average pay also rose sharply last month. It's exceeded inflation this year after barely keeping pace since the Great Recession ended four years ago. Average hourly pay rose 10 cents in June to $24.01. Over the past 12 months, it's risen 2.2 percent. Over the same period, consumer prices have increased 1.4 percent.

Stocks surged Friday. The Dow Jones industrial average jumped 147 points, nearly 1 percent. The yield on the 10-year Treasury note soared to 2.73 percent, its highest point since August 2011, from 2.51 percent late Wednesday.

That's a sign that investors think the economy is improving and that the Fed will slow its bond buying this year. If it did, long-term rates would likely rise.

Friday's report showed that the U.S. economy added 70,000 more jobs in April and May than the government had previously estimated — 50,000 in April and 20,000 in May.

The Fed has been buying $85 billion in Treasury and mortgage bonds each month since late last year. The purchases pushed long-term interest rates to historic lows, fueled a stock rally and encouraged consumers and businesses to borrow and spend.

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HD36 wrote:
Wow sounds great until you look at the details: 300,000 of those jobs added we're part-time workers. The economy lost 240,000 full time jobs. Most of those jobs were in the service sector, hotel and leisure which includes resturaunts and bars. The trade deficit went up $45 billion as we lost 6000 manufacturing jobs. Oil went over $103 a barrell, interest rates went up the highest in two years, taxes and health care are going up. How are people going to pay for a full time mortgage with a part time job?
on July 6,2013 | 06:42AM
wiliki wrote:
Cheaper employment is better than no employment. It's the best that our economy can do.
on July 6,2013 | 10:58AM
allie wrote:
agree..the untold story is that most of these "macjobs" are low paying service worker jobs. Your country got jobbed by Clinton and the neo-liberal gang that imposed globalism and trade agreements that stripped your country of manufacturing jobs which were well paid. China has benefited but have you?
on July 7,2013 | 08:45AM
noheawilli wrote:
And don't forget this data is not anything close to be anything more than a random phone survey. The leviathan likes to keep the simple entertained.
on July 6,2013 | 08:25AM
soundofreason wrote:
Smoke and mirrors.
on July 8,2013 | 06:48AM
wiliki wrote:
No doubt we are in a slow recovery. Republicans have prevented Obama from a larger fiscal stimulus. We would have been in a lot better business environment if that had happened.
on July 6,2013 | 10:56AM
HD36 wrote:
We are in a phony recovery. Wait till the Fed takes away the $85 billion a month stimulus bond buying.
on July 6,2013 | 01:49PM
soundofreason wrote:
Right, cause everyone knows its so easy to recover from living off of credit cards for a few years :/
on July 8,2013 | 06:50AM
Maneki_Neko wrote:
Anybody remember Barry saying we had to spend near a trillion dollars so unemployment would not go over 7%?

Reminder: unemployment has been over 7% for 54 months now. That's 4 years and 6 months and the jobs that do get added are part time in low paying service sectors.

Epic fail.

on July 7,2013 | 09:19AM
soundofreason wrote:
Did anyone else see that article last week that stated only 46% of Americans have FULL time jobs?
on July 8,2013 | 06:47AM
soundofreason wrote:
"Friday's disappointing jobs report showed that part-time jobs are at an all-time high, with 28 million Americans now working part-time. The report also showed another disturbing fact: There are now a record number of Americans with temporary jobs." >>> THERE'S your jobs that they are touting. Temporary status jobs. Need to get the WHOLE truth out there.


on July 8,2013 | 07:39AM
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