June's Abysmal Jobs Report is Just the Beginning

July 11, 2011

The June jobs report was abysmal - bud sadly it's just the beginning.

After just a few months of modest, stimulus-induced improvement the jobs market is again sliding backwards into a "new normal" characterized by even higher rates of unemployment.

"Unfortunately, I expect chronic high unemployment to be with us for years, and to borrow a phrase from Bill Gross of PIMCO, that's the real ‘new normal,'" said Money Morning Chief Investment Strategist Keith Fitz-Gerald.

The dismal job growth boosted the unemployment rate to 9.2% in June from 9.1% the month prior. The labor force declined by 270,000, and the total amount of people out of work, including those who have stopped looking, is up to 16.2%, from 15.8% the month before.

More: http://moneymorning.com/2011/07/11/junes-abysmal-jobs-report-is-just-the-beginning/

http://www.tlnt.com/2011/07/07/mid-year-hiring-forecast-shows-positive-job-growth-the-rest-of-2011/

From the article: "That’s how I view CareerBuilder’s 2011 Mid-Year Job Forecast — as reasonably good news that seems to indicate that hiring (and the economy) may get a little bit better as we head through the last half of 2011.

According to the survey, “employers remain positive in their hiring expectations for the remainder of 2011 despite ongoing concerns over threats to economic growth,” and nearly half of employers (47 percent) plan to hire new employees from July through December, up from 41 percent in 2010."

and with the misplaced focus on deficit reduction, a lot more money is going to be sucked out of the economy in the coming months.