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Jobless Rate Lower Than Predicted Again

From the DNC’s Associated Press:

Jobless rate rises to 4-year high of 5.7 percent

By JEANNINE AVERSA, AP Economics Writer

WASHINGTON – The nation’s unemployment rate climbed to a four-year high of 5.7 percent in July as employers cut 51,000 jobs, dashing the hopes of an influx of young people looking for summer work.

Payroll cuts weren’t as deep as the 72,000 predicted by economists, however. And, job losses for both May and June were smaller than previously reported.

July’s reductions marked the seventh straight month where employers eliminated jobs. The economy has lost a total of 463,00 jobs so far this year.

The latest snapshot, released by the Labor Department on Friday, showed a lack of credit has stunted employers’ expansion plans and willingness to hire. Fallout from the housing slump and high energy prices also are weighing on employers.

The increase in the unemployment rate to 5.7 percent, from 5.5 percent in June, in part came as many young people streamed into the labor market looking for summer jobs. This year, fewer of them were able to find work, the government said. The unemployment rate for teenagers jumped to 20.3 percent, the highest since late 1992

In May and June combined, the economy lost 98,000 jobs, according to revised figures. That wasn’t as bad as the 124,000 reductions previously reported

Still, workers saw wage gains in July.

Average hourly earnings rose to $18.06 in July, a 0.3 percent increase from the previous month. That matched economists’ expectations. Over the past year, wages have grown 3.4 percent…

More tales of doom from the AP’s ever hopeful (for a recession) Jeannine Aversa.

(Remember, just a few short months ago this economic guru was writing about women’s handbags and day care.)

Payroll cuts weren’t as deep as the 72,000 predicted by economists, however. And, job losses for both May and June were smaller than previously reported.

Of course it’s not possible that this report might not be wrong as well.

The unemployment rate for teenagers jumped to 20.3 percent, the highest since late 1992.

And of course this had nothing to do with raising the minimum wage.

The Democrats (and probably Ms. Aversa) swore it would have no effect.

This article was posted by Steve on Friday, August 1st, 2008. Comments are currently closed.

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