The June jobs numbers are out and they are not good, even though economists expected a big bounce back from May's dismal report.
Non-farm payroll rose 18K. Nationwide, the unemployment rate is now 9.2%
WASHINGTON (MarketWatch) — The U.S. economy added jobs at a slower pace in June than in May, suggesting that the sudden slowdown in the economy might be longer-lasting and more severe than feared.
This is really disturbing since both federal and state leadership seems to have forgotten what counter-cyclical spending is all about. Instead, we're cutting thousands of state workers, who use their paychecks to, you know, purchase goods and services. At 9.7 percent, North Carolina's May unemployment rate was higher than the national rate. We'll see when the state numbers come out if that's still the case. There was a significant drop in the state's initial unemployment claims, but not a lot of other data to suggest even a slight turnaround.
Joe Stiglitz from this morning:
The remedies to the US deficit follow immediately from this diagnosis: put America back to work by stimulating the economy; end the mindless wars; rein in military and drug costs; and raise taxes, at least on the very rich. But the right will have none of this, and instead is pushing for even more tax cuts for corporations and the wealthy, together with expenditure cuts in investments and social protection that put the future of the US economy in peril and that shred what remains of the social contract. Meanwhile, the US financial sector has been lobbying hard to free itself of regulations, so that it can return to its previous, disastrously carefree, ways.