The unemployment rate in the United States is stuck at 8.2%. Based on the latest report released by the Department of Labor, employers added 80,000 jobs in June. The increase was moderate compared with the 77,000 jobs added last May.
With the S&P 500 falling a double-digit percentage in the first half, most equity hedge fund managers struggled to keep their heads above water. The performance of the equity hedge fund sector stands in stark contrast to macro hedge funds, which are enjoying one of the best runs of good performance since the financial crisis. Read More
The total number of jobs created in June is lower than the expected 90,000. Most analysts state that 250,000 jobs need to be created a month to reduce the current unemployment rate in the country. At present, there are approximately 12.7 million workers out of job.
Based on the jobs report, the unemployment rate among the blacks (14.4%), whites (7.4%), Hispanics (11%) and Asians (6.3%). Job hiring in the health care and wholesale trade showed an upside trend. In June, the health care sector added 13,000 jobs while wholesale trade added 9,000 jobs.
Although the jobs report is a disappointment for many, it also shows positive figures, such as the increase in the average workweek for private employees in the non-farm sector for 34.5 hours and the 6 cents increase in the hourly pay to $23.50. The report also showed that the average pay for private sector production and non-supervisory employees increased by 5 cents to $19.74.
According to a Fox Business report, in June the private sector added 84,000 jobs but the government reduced 4,000 jobs.
Kathy Bostjancic, director of Macroeconomic Analysis for the Conference Board thinks that the economy has no forward momentum and the help from monetary or fiscal policy is little. She said that “lawmakers inaction on the upcoming fiscal cliff” in addition to the financial instability in Europe and the slowing growth in emerging markets is not conducive for hiring.
The New York Times previously reported that the California governor is planning to axe a total of 15,000 state jobs while a latest report from Reuters cited that Best Buy Co. (NYSE:BBY) is planning to let go 2,400 employees.
On the other hand, Fox News notes some private sector companies hiring. Three examples of companies hiring include; Union Pacific Corporation (NYSE:UNP), Firehouse Subs and Universal Health Services, Inc. (NYSE:UHS). According to the report, Union Pacific Corporation is a railroad company established by the late President Abraham Lincoln in 1860. The company is currently adding 4,500 new jobs including diesel mechanics and electricians. Firehouse Subs is operates 515 restaurants across the United States and is hiring 1,500 workers including general managers, cashiers etc. The company is expanding in 16 locations. Universal Health Services, Inc. is also expanding its operations and it will open a new 140-bed hospital in California. The company is adding 1,400 health care jobs including nurses, pharmacists, radiology technicians etc.
Meanwhile, on the political front, the recent jobs report might help boost the campaign of Republican presumptive nominee Mitt Romney, who commented that the slow growth in jobs is a “kick in the gut” to the Obama administration.
Meanwhile, during President Obama’s campaign trail in Ohio he reminded voters that his administration inherited difficult economic situation the country is facing from his predecessor. He pointed out that his objective is to provide economic security to middle-class families. He said, “I want to get back to a time when middle-class families and those working to get into the middle class have some basic security. We’ve got to deal with what’s been happening over the last decade, the last 15 years.”