US employment improved in July with 117,000 new jobs added

05 August 2011 14:43  [Source: ICIS news]

WASHINGTON (ICIS)--The US added 117,000 new jobs in July, the Labor Department said on Friday, a slightly better gain than analysts had been expecting and enough to bring the nation’s unemployment rate down a notch to 9.1%.

Analysts had been expecting job growth of around 90,000-100,000 for the month.

July’s employment figures followed two disappointing months of almost no job growth in May and June. 

The decline in the unemployment rate from June’s 9.2% to July’s 9.1% also brought an end to what had been three successive months of incremental but worrisome increases in the jobless rate.

The employment report comes in the wake of Thursday’s massive sell-off on Wall Street, with the Dow Jones Industrial Average falling by more than 500 points, and similarly sharp stock market downturns in Asia and Europe.

Economists and Wall Street analysts say that the sudden plummet in stock values reflects investor fears about the worsening sovereign debt crisis in Europe, cooling economies among developing countries, and the increasing prospect for a new recession in the US.

Against a total US non-farm workforce of 130m and 14m unemployed, July’s 117,000 increase in jobs is still weak and suggests that the country’s economic recovery remains unstable.

The nation needs to add about 150,000 new jobs each month just to accommodate new workers entering the market.

To begin lowering the unemployment rate, the economy should be adding 200,000 to 300,000 new jobs each month.

($1 = €0.71)

Paul Hodges studies key influencers shaping the chemical industry in Chemicals and the Economy

By: Joe Kamalick
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