Grim Jobs Reports For June

Posted on July 3, 2008

The economy isn't looking so good. The latest jobs report shows that the U.S. shed 62,000 jobs in June.

The U.S. economy shed some 62,000 more jobs in June -- the sixth straight month of losses. So far this year, the unemployment rate has risen from 4.9 percent at the beginning of the year to 5.5 percent in June -- the highest level in more than three years. Thursday's report also boosted the jobs cuts initially reported for May. The nation's payrolls now have shed 435,000 jobs since December.
More job losses are likely in coming months. Planned layoffs at U.S. companies last month were nearly 50 percent above year-ago levels, according to outplacement firm Challenger, Gray and Christmas. "I think the (jobs) report tells us the economy is actually deteriorating," said John Ryding, former chief economist with Bear Stearns now with RDQ Economics. "The labor market seems to be getting worse."

Construction, manufacturing, financial services and retail sales all had massive jobs cutbacks. There were some small gains in education and health services, but they were offset by the job losses. More layoffs are to come. Starbucks is laying off 12,000 people this month and closing hundreds of stores. Jobs, energy policy and the economy need to be the top subjects for John McCain and Barack Obama.