JEANNINE AVERSA, AP Economics Writer
WASHINGTON – Employers cut a larger-than-expected ["larger than expected" by whom? I don't know anyone who was surprised by the increase. Do you?] 467,000 jobs in June, driving the unemployment rate up to a 26-year high of 9.5 percent, suggesting that the economy's road to recovery will be bumpy.I don't know if any is reading my blog. Frankly, I don't care. I just need to blow off steam or this crap would get bottled up inside me... It feels good to "talk back" to the MSM....
The Labor Department report, released Thursday, showed that even as the recession flashes signs of easing ["signs of easing"? Really? Where?], companies likely will want to keep a lid on costs and be wary of hiring until they feel certain the economy is on a solid ground. [Or maybe until they know just how much more of their profits will be confiscated by an out of control government?]
June's payroll reductions were deeper than the 363,000 that economists expected.
If laid-off workers who have given up looking for new jobs or have settled for part-time work are included, the unemployment rate would have been 16.5 percent in June, the highest on records dating to 1994. [FINALLY! Someone finally said it! They have been hiding this fact for months!]
[But wait! Good times are right around the corner....] Even with higher pace of job cuts in June, the report indicates that the worst of the layoffs have passed. The deepest job cuts of the recession came in January, when 741,000 jobs vanished, the most in any month since 1949.
And there was some other encouraging job news Thursday.
In a separate report, the department said the number of newly laid-off workers filing applications for unemployment benefits fell last week to 614,000, in line with economists' predictions. The number of people continuing to draw benefits unexpectedly dropped to 6.7 million.
Federal Reserve Chairman Ben Bernanke predicts the recession will end this year, with many economists forecasting that the economy will start to grow again as soon as the current July-September quarter. [And he know how accurate "Unle Ben" has been so far... Why do we look to these people for answers, much less predictions?]
[Now here IS some good news...] An elevated unemployment rate could become a political liability for President Barack Obama when congressional elections are held next year. The last time the unemployment rate topped 10 percent, the party of the president — then Ronald Reagan's GOP — lost 26 House seats in midterm elections in 1982.
So far, many people are saving — rather than spending — the extra money in their paychecks from Obama's tax cut, blunting its help in bracing the economy. Much of the economic benefit of Obama's increased government spending on big public works projects won't kick in until 2010, analysts say. [ALL $13 per week, straight into their savings account!]