Thursday :: Jul 3, 2003

June Unemployment Shoots to 6.4%

by Steve

The Bush Administration war on the economy continues racking up successes with the release today of the June unemployment numbers. With Wall Street predicting that the numbers would show a slight increase to 6.2%, Bush’s successful war again surprised experts by exceeding expectations, blowing past those numbers to a startling 6.4% unemployment rate. According to the experts, the number increased because so many people came back onto the market looking for work in June.

The nation's unemployment rate shot up to 6.4 percent in June, the highest level in more than nine years, in an economic slump that has cost nearly a million jobs in the last three months.

Businesses slashed 30,000 jobs just last month, with cuts heavily concentrated on factory assembly lines, the Labor Department reported Thursday.

The 0.3 percentage point increase from May's 6.1 percent rate was the largest month-to-month rise since the Sept. 11, 2001 terror attacks. That surprised analysts who predicted a smaller rise, to 6.2 percent. The last time the overall rate was higher was in March 1994.

While recent economic indicators point to an economy struggling toward recovery, the latest report demonstrated that America's job market was still very much in a state of recession last month.

Since March, unemployment has increased by 913,000. Two million people were unemployed for 27 weeks or more last month, an increase of 410,000 since the start of the year.

Another factor behind the increase in the overall civilian unemployment rate was the increase in the number of people seeking work in June. Optimism about an economy rebound led over 600,000 people to resume their search for work.

Because the government calculates the overall unemployment rate based on a survey of American households, and because the lackluster economy wasn't producing enough jobs to accommodate an increasing number of job-seekers, that rate increased significantly.

I’m sure that dividend tax cut will do the trick to provide jobs for those 600,000 who are resuming their search for work. But remember, it is Bill Clinton’s fault that the Bush economy has hemorrhaged so many jobs. Mr. Bush’s “Jobs and Growth” package must surely work, since that is what it says on the backdrops at his campaign appearances. He wouldn’t say it if he was full of shit, would he?

David Leonhdardt of the NY Times today writes a good piece on how Bush is racing against ghosts of the past in hoping that his record starts improving quickly.

Steve :: 7:36 AM :: Comments (7) :: Digg It!