Private Employers Shed Jobs for the Sixth Month in a Row and Unemployment Remains at 5.5 Percent
Maloney: Economy Needs Second Stimulus of Infrastructure Development and Aid to States
Rep. Carolyn B. Maloney (D-NY), Vice Chair of the Joint Economic Committee, issued the following statement regarding the Bureau of Labor Statistics' June 2008 employment situation, which showed that nonfarm payrolls fell by 62,000 jobs and the unemployment rate remained at 5.5 percent. Since December, the economy has shed 564,000 private sector jobs and 438,000 jobs overall.
"Today's unemployment and wage data shows that families are feeling the squeeze from all angles," said Congresswoman Maloney, Vice Chair of the Joint Economic Committee (JEC). "The Recovery Rebates have been boosting consumption, but the economy clearly needs a second stimulus package of infrastructure development and fiscal relief for the states. We have not seen so many people out of work since 2003, when the economy was coming out of the 2001 recession. Rising gas and food prices have far outpaced wage gains. Millions will benefit from the extension of unemployment benefits signed into law this week, but clearly, we must do more to stem the tide of rising job losses."
Highlights from the BLS June 2008 employment situation:
The unemployment rate held steady at 5.5 percent. In June, 8.5 million people were unemployed, and nearly 4.4 million of those (51.7 percent) lost their jobs involuntarily. There are 1.5 million more people unemployed than there were a year ago.
The economy continues to shed jobs. June marks the sixth straight month of job losses. In June, the economy lost 62,000 jobs, bringing the total job losses so far in 2008 to 438,000. Consistent job losses of this magnitude only happen during recessions.
The share of population with a job has fallen over the past year. The share of the population with a job fell to 62.4 percent in June. Among men, the employment rate has fallen a full percentage point over the past 12 months, down to 68.8 percent. Compared to a year ago, there are 527,000 more women unemployed. Teens are finding that summer jobs are scarce: nearly one-in-five teenagers in the labor force (18.1 percent) is unemployed.
Employers are cutting back on temporary help and overtime. The temporary help industry continues to shed jobs: over the past year, this industry has lost 178,000 jobs, with 30,000 jobs lost last month alone. Temporary help has lost twice as many jobs in the first half of 2008 as in all of 2007. Manufacturing overtime has fallen sharply from its peak in early 2006 down to 3.9 hours per week and is as low as it was during the 2001 recession.
Wages are falling behind inflation. Real wages were lower in June than they had been in September 2006. High prices for gasoline and medical care are squeezing the take-home pay of workers. Average hourly earnings rose by 0.3 percent in June. The average quarterly annual rate of wage growth is 3.2 percent, far less than inflation, which rose by 4.2 percent over the past year.
Unemployment is up among women with families, minorities, and workers without a college degree. Single mothers saw their unemployment rate rise to 7.9 percent in June 2008, an increase of over a percentage point from a year ago. African American and Hispanic unemployment have both increased sharply over the past year, up to 9.2 percent for African Americans and 7.7 percent for Hispanics. Unemployment has also risen for those with less education.
Jobs have become harder to find. Overall, there are 8.5 million unemployed Americans, and 5.4 million additional workers who want a job but are not counted among the unemployed. There are currently nearly one million more job-losers than there were at this time last year.
Workers find unemployment is lasting longer. Nearly one in every five of the unemployed - 1.6 million Americans - have been jobless for more than 26 weeks, the maximum number of weeks for receiving regular unemployment insurance (UI) benefits. Between July and December 2008, nearly 1.5 million unemployed workers will become eligible for the extended UI benefits signed into law this week.
The Joint Economic Committee, established under the Employment Act of 1946, was created by Congress to review economic conditions and to analyze the effectiveness of economic policy.