Employers Cut Jobs For 6th-Straight Month

62,000 Employees Slashed From Payrolls; High Energy Costs Blamed For U.S. Labor Woes

(CBS/ AP)  Employers cut payrolls by 62,000 in June, the sixth straight month of nationwide job losses, underscoring the economy's fragile state. The unemployment rate held steady at 5.5 percent.

The latest snapshot of business conditions, released by the Labor Department on Thursday, showed continued caution on the part of employers who are chafing under high energy prices and are uncertain about how long the economy will be stuck in a sluggish mode, reflecting fallout from housing, credit and financial troubles.

Since the beginning of 2008, roughly 400,000 people have lost their jobs, CBS News correspondent Jeff Glor reports.

Heavy job losses in construction, manufacturing, business services and retailing eclipsed job gains in education and health services, leisure and hospitality, and government.

The report was largely on target with economists' forecasts. They had been expecting employers to reduce payrolls by around 60,000 jobs in June and for the unemployment rate to slip a notch to 5.4 percent.

The jobless rate spiked to 5.5 percent in May. That marked the biggest over-the-month increase in two decades and left the rate at its highest since October 2004.

Job losses in both April and May turned out to be considerably deeper than had been thought. Payrolls dropped by 67,000 in April, versus the 28,000 previously reported. And, losses in May came to 62,000, rather than the 49,000 initially estimated.

Also Thursday, oil prices neared $146 a barrel Thursday for the first time ever on reports of declining U.S. stockpiles and the threat of conflict with Iran. Comments by Saudi Arabia's oil minister suggesting his country had no immediate plans to boost production also lifted prices.

So far this year, the economy has lost a total of 438,000 jobs, an average of 73,000 a month.

The economy is the top concern of voters. The faltering labor market is a source of anxiety not only for those looking for work but also for those worried about keeping their jobs during uncertain economic times.

In a separate report from the department, the number of newly laid off people signing up for unemployment insurance rose sharply last week. New applications jumped by 16,000 to 404,000, the highest level since late March. The increase was bigger than economists were expecting; they were forecasting claims to rise to around 385,000.

With inflation concerns growing, the Federal Reserve last week ended an aggressive rate-cutting campaign, started last September to shore up economic growth.

Fed Chairman Ben Bernanke and his colleagues are caught between risky crosscurrents of plodding economic growth and spiraling energy and food prices that threaten to spread inflation. Lowering rates further would worsen inflation. But boosting rates too soon to fend off inflation could hurt the fragile economy.

Workers with jobs saw modest wage gains in June

Average hourly earnings rose to $18.01 in June, a 0.3 percent rise from May. That matched economists' forecasts. Over the past year, wages have grown 3.4 percent, the smallest annual increase since January 2006. Paychecks, though, aren't stretching as far because of high food and energy prices.

In its latest economic assessment last week, the Fed observed that "labor markets have softened further."

However, the Fed believed that its powerful series of rate reductions along with the government's $168 billion stimulus package, including tax rebates, will help lift economic growth over time.

Some economists fear that when the bracing force of the rebates fades, the economy could be in for another rough patch. Those analysts worry that the economy - which has been coping with sluggish growth at best - will have a "relapse" and lose momentum near the end of this year.

There's been a lot of talk about whether the economy is on the brink of, or has fallen into, its first recession since 2001. The official determination, made by a panel of academics, usually comes well after the fact.

Economists expect the unemployment rate to hit 6 percent or higher early next year, even if the economy were to show better growth. Companies will be reluctant to ramp up hiring until they feel certain the economy will stay on firmer footing.

[singingrick]

Boy those tax cuts to the rich are really paying off now.

Thanks for voting Republican.


lol!

[whiskyrocker]

The economy is just in a "slow down" right?

[irliberal]

libs need not post here...they dont work anyway


--------------------------------------------------------------------------------

Posted by jamesm12341 at 09:20 AM

Honey, you''re the one here 24/7. Get a job!

Thanks Bush & repubs, now that our economy (and everything else) is in the toilet, we''ll have to bail you out - again.

[jjp735i]

Has anyone told Bush? He is always the last one to hear anything.

[underdogus10]

Uncle Sam wants you...can''t find a job? enlist...

[armydog2]

Way to go georgie, this robust economy of yours is making the USA a third world nation. don''t forget georgie what comes around goes around, you will get yours one day.

[whitemale08]

Thanks Bush and Cheney and Ronny.

And thankyou Republicans for flushing our economy down the Iraqi toilet.

America brace yourselfs for the soup kitchens, scores of empty retail store parking lots, and tent cities popping up everywhere like they already have in California.

Thanks Ronny.

[shanev137]

You really gotta wonder about the people who write these articles.

[antoniof123]

It is funny but in the 1950''s the Republicans used this same technique but they hated the Soviet Union and allowed McCarthy to almost destroy a country until America removed most of the Republicans in 1954 and 1956. Then 40 years passed until they were able to get congress back. That in itself should have told them don''t do it again. But they say that the previous generation was dying out and they wanted to do the same thing again.

So now when you don''t see power for another generation don''t cry, whine, yell, scream, or holler. We are sick of you conservatives you are not fiscal you are irresponisble and you have proven it.

Goon night and good luck.

[forthepeopl1]

anyone know how they can say incomes or wages went up? and how they figure that?

[forthepeopl1]

in mass yesterday cigs went to over 6 dollars a pack, thats over night. what else can they do to us average americans before china,and other country comes in and buys the rest of the country.

wake up americans. time to get rid of this whole goverment.

time for americans to march down to washington and take them all out..they cant stop 10''s of millions of americans at once. so lets get this done. i am ready to charge

[shanev137]

time for Americans to march down to Washington and take them all out..they cant stop 10''''s of millions of Americans at once. so lets get this done. i am ready to charge

Posted by forthepeopl1 at 10:03 AM : Jul 03, 2008

------------


Part of the plan was to polarize and divide this nation into two camps that hate each other. That''s why the masses never unite and nothing constructive ever gets done.

People in this country aren''t Americans....they''re either Republicans or Democrats.

[edgardebbins]

Better be stashing some silver and learning to grow your own potatoes.

[aldon61]

This country''s economy is in the tank. Brace yourselves folks, cause it''s going to get much worse!
In business, we''re taught to lower expenses and raise revenue. What''s this mad man doing? Spending at an all time record, giving tax money back to the citizens to "buy" things. That is a bail-out for american business, not a "gift" from Uncle Sam. In the meantime, the S.O.B. has mortgaged our nation to the hilt, now 9.5 TRILLION dollars. Our grandchildren will be paying for this folly. Get a grip now: McCain has admitted that the economy is not his strong suit, but he will definately keep our war effort going, he will continue to fund the "unnecessary war" in Iraq. This is madness people, it''s too late to impeach the bass/***, but for God''s sake, don''t vote for McCain!

[Vinman]

Imagine that. Enployers cutting jobs. And in the same story, its reported that oil is up again. Well now, let''s see.....price of oil rises, energy costs go up for everyone including businesses, employers cut jobs in order to have money to pay the bills. Yep, the economy is in the tank and getting deeper.

[whitemale08]

Folks, as much as I''m angry with Republicans for taking us to war etc. in reality we should stop calling each other names and recognize who the real enemy is.

The enemy is the private Federal Reserve System.

It runs both parties and has destroyed not just our country but nations around the world.

We should stop calling these Federal Reserve Notes dollar bills and call them for what they are ''counterfiet''

We should demand our leaders to host another Bretton Woods conference and go back to the Gold Standard.

It''s what Republican Barry Goldwater would of done. "he hated the Federal Reserve System" and it''s what FDR would of done "he made sure the Federal Reserve System was anchored by gold and silver.

It''s our only hope folks.

[gunshack1]

Does anyone remember the warning Ross Perot gave us about NAFTA? "That great sucking sound of our jobs going away". Who gave us NAFTA? I forgot. Let me think. Was it BILL CLINTON?

[sleepyric]

I see the comments here, and I just can''t believe that there are still morons out there who blame everything on past presidents. It was the moron Bush YOU voted for who has driven this country into the state it is currently in. Eight years of his policies are to blame, not anyone who was in office 8 years ago. Let me remind you, that it was Bush Sr., who embraced "globalization". Well, see what globalization has gotten us. Zero! Yet there are still idiots who think "our president right or wrong". Well, you chose wrong!

[omega39-2009]

Economist John Williams of Shadow statistics puts the real unemployment rate at close to 14%, that sound a lot closer to the truth than the 5% nonsense spewing from the administration.

[naucoming4u]

Was it BILL CLINTON?

Posted by gunshack1 at 10:39 AM : Jul 03, 2008
.............

...Created by and pushed by a Republican congress... supported by both Bill Clinton and Al Gore, (who actually debated Ross Perot on "Larry King Live" where Mr. Perot said his famous quote you mentioned).

[piercetheval]

...what''s to worry? I hear the military will be hiring for the next 100 years.
VOTE LIBERTARIAN IN ''08
BOB BARR!

[naucoming4u]

Economist John Williams of Shadow statistics puts the real unemployment rate at close to 14%, that sound a lot closer to the truth than the 5% nonsense spewing from the administration.

Posted by omega39 at 10:49 AM : Jul 03, 2008
.............

Yes, that is true, because the government statistics, (meant to be artificially low), only counts those currently on Unemployment. Those whose unemployment benefits run out, are NOT counted, but they could still be unemployed! (As many of us already know).

And of course, there are those who take a low-level retail job just to make ends meat...

...and there is no statistic to count people who lost their high-tech engineering jobs to, (Costa Rica, India, China, etc.), and then forced to work at WalMart!

[sgtrds-e4]

This is the end result of the trickle down theory of economics as practiced first by Reagan and now by Dubya. It''s SUPPOSED to happen this way. Congratulations, you''re being trickled down upon by the rich. Kinda wet huh?

[timdgrim]

Funny how the headline didn''''t say anything about the Unemployment rate staying at 5.5%.
Posted by ritewingman
*******************
And how much has the population in the work force increased? Even though the precentage may be about the same, more people are out of work by the hundreds of thousands. 5.5% of the workforce in the 90''s is a lot less than 5.5% of the workforce today, not counting the undocumented illegal aliens that are taking jobs away from citizens.

[donlb-2009]

Even if Bill Clinton vetoed NAFTA, jobs from the United States would still be outsourced. Skilled labor in other countries is cheaper and better educated, a winning combination. Thus, the way to keep a job is to learn principles of economics, and then apply them to your own life. For example, align your occupation with the core compentiencies and dynamic capabilities of an organization. If you cannot do so quickly, then do so over time, but do it. Second, get an education and be prepared to be flexible. I am sorry that people cannot find work and must suffer, but that is reality, and we all need to understand how to cope with bad situations. I hope that this helps.

[piercetheval]

SUPPORT COTTAGE INDUSTRY AND YOUR LOCAL CRAFTSPERSON/TRADESPERSON...
AND VOTE LIBERTARIAN IN ''08
BOB BARR!

[naucoming4u]

Posted by DonLB at 11:26 AM : Jul 03, 2008
.............

Some companies have gotten the taste of cheap labor as a huge profit driver, and no matter how educated we (Americans) become, these "American" companies will NEVER go back to paying 5 to 10 times more for the same (supposedly) educated work force... never.

It is a very simplistic thought that if we would "just get educated to the level the companies want". No, what Americans have to do to satisfy corporate "America" is to lower our standards to live and work at a wage level they want to pay... at or below minimum wage.

[irliberal]

Over SIX years of war. Civil rights breached by our commander in chief. Internationally recognized torture sanctioned by the White House. Two invaded and currently occupied countries. Hundreds of thousands dead, including OVER 4500 American soldiers. Billions of our tax dollars spent, and yes, are still being spent to this very moment.

Iraq, which had NOTHING to do with 9/11, is now an occupied country which will implode when we get out of it, whether that happens one, two, ten or five hundred years from now. A society that CHOOSES to be ruled by religion cannot become a democracy; it can only be a theocracy with voting cards.

Bin Laden still lives. The mastermind of 9/11 still walks free.

The one, simple word for this is: failure. No amount of deception, indignation or wailing by republicons can change these facts.

Failure of Bush. Failure of Cheney. Failure of the republicans.

Time for a change.

[missingamerica]

DonLB said:

"Even if Bill Clinton vetoed NAFTA, jobs from the United States would still be outsourced. Skilled labor in other countries is cheaper and better educated, a winning combination."

Cheaper is right, better educated is wrong.

DonLB further said:

"For example, align your occupation with the core compentiencies and dynamic capabilities of an organization."

True, but not for the surface reasons.

The fact of the matter is our MBAs are now our weak point - witness George W. Bush. In a nutshell they determine their organization''s "core competency" based upon a "Do I understand it?" test - and if they don''t understand what it is that you do, you become an irritating mystery ripe for outsourcing/offshoring.

America''s biggest problem is our MBAs have two major failings: They are dumb as rocks, and the only thing that motivates them is money.

You are just an expense that deducts income directly from their pockets in their eyes, and "big picture" perspectives like the necessity of having an economy that provides labor with sufficient money to be consumers never enters their minds.

They''ve gone and cut their own throats...unfortunately, on their way to economic suicide, they butchered America, too.

[naucoming4u]

Posted by ibsteve2u at 12:01 PM : Jul 03, 2008
.........

Good response steve!

As I have said, it is an extremely simplistic mindset to think that if only we Americans just get educated, then the companies will hire us.

Clearly, corporate "America" wants one thing and one thing only...

...skilled(enough) labor at a bargain-basement wage.

[element51]

jamesm12341....Hold on there little buddy. Your statement that ''libs don''t work" is just a little over the top. I am a liberal and I have worked every day of my life. I worked my way through college and became a teacher and taught for 26 years. How can you make a blanket statement like that knowing it is an out and out lie? Do you think you''re cute? One of the reasons that I am a liberal is because I would be so embarrassed to be like you. I don''t know why it is that you people think you have to make snide snotty remarks all the time. Why don''t you learn to make your arguements in a rational way. Maybe it''s because most of your comments come from Limbaugh and Hannity and Coulter and they are masters of deceit. If you want to argue and discus something, fine...but keep your snotty remarks to yourself.

[harpoot]

"Funny how the headline didn''''t say anything about the Unemployment rate staying at 5.5%."

Hey smogbrain, that''s because when your unemployment benefits run out you are no longer carried as an unemployed person. Nice trick to fool the brain dead.

[ianlou]

But here I go again trying to use these strange things called FACTS when I''''m dealing with children.
Posted by ritewingman

Too bad for you these "children" have a vote.

[element51]

When NAFTA was being debated I felt there was a problem with it when I first heard about it. Then when Rush Limbaugh came out in favor of it I knew it was wrong, wrong, wrong. I believe in fair trade but I also believe that the playing field must be level and we know that with NAFTA is isn''t. And as for the unemployment rate, 5.5% is a lie. In addition, many workers have gone from 14-15 dollar per hour jobs to jobs paying 7-8 dollars per hour. Although the right wingers out there claim that Americans (democrats) don''t want to work they are dead wrong. Nobody wants to not work. So people end up taking jobs at half the pay they were getting and the govenment no longer counts them as unemployed. (technically true) My oldest son finds out today if his job is going to be out-sourced. He has a baby coming in September and there are NO decent paying jobs. He is a skilled welder. What''s he going to do? We live in a town of 165 thousand, not a small town and still...no jobs.

[jn122736]

%u201CHeavy job losses in construction, manufacturing, business services and retailing eclipsed job gains in education and health services, leisure and hospitality, and government.%u201D

%u201CEmployers cut payrolls by 62,000 in June, the sixth straight month of nationwide job losses, underscoring the economy''s fragile state. The unemployment rate held steady at 5.5 percent.%u201D
~~~~~~~~~~~~~~~~~~~~~

With the continuing increase in the U.S. population it is only logical to assume that a larger number of new citizens entered the workforce than citizens who retired/left.

Add that number to the 62,000 net job losses in June, and the real increase in the jobless for June is probably at least six digits.

How can the jobless rate hold steady when the increase in the number of jobless workers available, exceeds the jobs available?

That doesn%u2019t fir any mathematical deduction/formulae%u2019s I was taught.

[underdogus01]

jamesm12341....is a 19yr old teenager a "troll"

[underdogus01]

That doesn%u2019t fir any mathematical deduction/formulae%u2019s I was taught.


Posted by jn122736 yep I agree with you!! 100%

[missingamerica]

"The unemployment rate held steady at 5.5 percent." = "Since the beginning of 2008, roughly 400,000 people have lost their jobs"????

Daggone...the people in the Commerce Department and the Department of Labor do an OUTSTANDING job of "staying on-message".

lolllll...

[underdogus01]

there you have it folks we are in serious trouble and it will only get worse, happy 4th of july!! watch your head

[mcvet]

Hang in there unemployed. OBammy''''s gonna change it. While you don''''t have anything to do, you can help write his bogus biography.

Posted by globlwarning at 01:01 PM : Jul 03, 2008
+ report abus

Most American''s hope somehow Obama can turn around the mess created by George W. Bush and the Fascist but NOT this Nazi... He doesn''t care about the nation or anyone but himself. You have to wonder where they slime from.. what produces them. SIEG HEIL BUSH

[mcvet]

Hey smogbrain, that''''s because when your unemployment benefits run out you are no longer carried as an unemployed person. Nice trick to fool the brain dead.

Posted by harpoot at 12:35 PM : Jul 03, 2008
+ report abuse

Well it was created by the puppets of those who have seen their Wages INCREASE 400% while the standard of living for the rest of us FELL. ROFLMAO

[underdogus01]

when unemployment benefits run out and they cant get a job, DEPRESSION a''COMING

[underdogus01]

don''t buy gold, buy bullets....

[missingamerica]

I''m starting to think that besides the tax rates needing an adjustment, there should be a one-time "penalty tax" for anybody who ever donated to the Bush/Cheney campaign and/or funded a 527 for Republican interests and so enabled the rape of America.

[bogusbones]

whomever wins the next election is inheriting the worst condition the country has been in since the depression. bush has made a litany of economic errors. like wall street short term gain for long term problems. the bush boys will point and say look at the mess and everything was good while we were there. they have created a mess that took 8 years and it will take 25 to unravel it. send this administration to iraq and afghanistan to fight the wars they started. send them to ohio and michigan unemployment lines so they can see the desparation their policies created. i''m sick of the same old d.c. and wall street garbage that we have to endure. a lot of $ for the few, misery for the many.

[underdogus01]

JTait2.. NEWS FLASH: Jihadist aren''t going away....

[tejasdemo]

I''''m starting to think that besides the tax rates needing an adjustment, there should be a one-time "penalty tax" for anybody who ever donated to the Bush/Cheney campaign and/or funded a 527 for Republican interests and so enabled the rape of America.


--------------------------------------------------------------------------------

Posted by ibsteve2u at 01:14 PM : Jul 03, 2008

Best post I have seen in a looooong time. Add taking away all Republicans voting cards until IQ tests are administered and we have a deal !

[forthepeopl1]

The birth-death "adjustment" added 177,000 jobs to the latest report, which put the total adjustment for the year at 600,000 new jobs -- or so the government claims.

Of course, it arrived at this number through a completely flawed methodology: At the end of the year, these numbers will quietly be backed out - just as they were last year. Even given these manufactured numbers, employment decline is consistent with recession.

The government only has statistics for jobs that are lost by small businesses; it gets this information from employment insurance numbers, etc. It has no information about how many jobs are created. Thus, it makes it up.

The government just assumes that for every job lost, there''s one added -- and then it adds that back to the jobs number.

This logic is flawed, to say the least.

In a recession, does it make sense that jobs would be created at the same rate at which they''re lost? Of course not, but that''s how government bureaucrats think and act -- just one reason we''re in so much trouble.

It''s not reality, but manipulation, pure and simple. If you recall, the government very quietly acknowledged that all those birth and death assumptions were false at the end of last year. No one seemed to notice this, of course.

But presto! Over a million jobs it claimed were created vanished into thin air.

[forthepeopl1]

when you have million of americans starving and not getting any money from the goverment.

then you will see americans fighting for america killing in the millions will be going on. no one will be safe.

so your right start buying all the ammo you can it will be needed to change this goverment.

[naucoming4u]

True, but who is going to buy their products at those wages? No one in this country. Guess they intend to market their junk to other lands. Basically, they are completely abandoning this country to line their own pockets.

Posted by mortal3 at 01:52 PM : Jul 03, 2008
...........

Exactly!

But that''s the "free market" economy at work!

Corporate "America" has one main creed:

- Commerce before country, profit before people.