Friday, August 03, 2007

Job Growth Weaker

Employers added fewer jobs to payrolls in July while the unemployment rate rose unexpectedly, according to the government's latest reading on the labor market.
There was a net increase of 92,000 jobs in the month, down from 126,000 added in June, a reading that was revised lower in the latest report. Economists surveyed by had forecast a 135,000 gain in July.

The unemployment rate was 4.6 percent, up from 4.5 percent in June. Economists had forecast the rate would remain unchanged.
The economy needs to add 150,000 jobs per month to keep up with increasing demand. The unemployment numbers do not include those who have stopped looking for work or those who are under employed (part time workers needing full time jobs).

During the Bush Presidency the average monthly job growth is far below the 150,000 benchmark yet they keep telling us how good the economy is doing. I believe this is a part of the perfect storm economically I have talked about for months. The one that will lead the US economy into recession and sweep a Democrat into the White House in 2008. the collapse of the housing market which is happening right now will only exasperate the problem.

Bad economic policies that favor the wealthy eventually come home to roost unfortunately it is the lower amd middle classes that will suffer.

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