Employment statistics not encouraging for speedy economic recovery
According to financial experts, the economic recovery depends to a large extent on the growth of employment opportunities in all segments. For the simple reason of more money in the hands of people, the spending will increase, bringing every sector including real estate into life. The national unemployment rate and figures of claims on unemployment insurance do not support the expectation for a speeder recovery of economy.
On the unemployment front – of course there is a fall slightly in the unemployment rate overall in the country – from 9.7 percent in the month of May to 9.5 percent in June. Hiring of manpower by the private sector – where all these years the scope was overwhelming prior to the financial meltdown – is rather slow, to add just 83,000 jobs.
According to reports, all over the nation as many as 125,000 positions were dropped by employers, which include temporary workers recruited for 2010 census compilation purposes. Sector-wise, the drop in employment in June was – construction industry losing 22,000 jobs successively for the last few years; and financial activities segment lost 15,000 job opportunities.
As for job growth, 46,000 more jobs were added in the professional and business services sector; and leisure and hospitality industry added another 37,000 positions.
The figures provided by Labor Department on the number of those unemployed people filing their first-time claims, towards unemployment insurance benefits, declined lately this month by 11,000 to reach 457,000 claims, which go to show the improvement in labor market will be slow, even as there is growth in the economic conditions. The four-week average of first-time unemployment claims fell to record low of 452,500 last week.
The number of persons collecting unemployment benefits continuously, not taking into account the benefits announced by special programs and extended programs like the one signed by the President on 22nd July, was estimated by economists to be in the range of 4.487 million. But in essence it rose to 4.565 million for the week ending July 17, an increase from 4.484 million during the earlier week.
While 16 states reported an increase during this period, 37 states and territories reported a decrease in claims. The Federal Reserve reports that there is improvement in several districts, though modestly, in employment potential.
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[...] According to financial experts, the economic recovery depends to a large extent on the growth of employment opportunities in all segments. For the simple reason of more money in the hands of people, the spending will increase, bringing every sector including real estate into life. The national unemployment rate and figures of claims on unemployment insurance do not support the expectation for a speeder recovery of economy. Read More.. [...]