Mr Robert J. Cornholio
07-03-2003, 06:02 AM
"Jobless Rate Hits 6.4 Pct., 9-Year High''
by LEIGH STROPE, AP Labor Writer
WASHINGTON - The nation's unemployment rate shot up to 6.4 percent in
June, the highest level in more than nine years, in an economic slump
that has cost nearly a million jobs in the last three months.
Businesses slashed 30,000 jobs just last month, with cuts heavily
concentrated on factory assembly lines, the Labor Department (news -
web sites) reported Thursday.
The 0.3 percentage point increase from May's 6.1 percent rate was the
largest month-to-month rise since the Sept. 11, 2001 terror attacks.
That surprised analysts who predicted a smaller rise, to 6.2 percent.
The last time the overall rate was higher was in April 1994.
While recent economic indicators point to an economy struggling toward
recovery, the latest report demonstrated that America's job market was
still very much in a state of recession last month.
Since March, unemployment has increased by 913,000. Two million people
were unemployed for 27 weeks or more last month, an increase of
410,000 since the start of the year. Only in March 1994 was the
unemployment rate higher.
Another factor behind the increase in the overall civilian
unemployment rate was the increase in the number of people seeking
work in June. Optimism about an economy rebound led over 600,000
people to resume their search for work.
Because the government calculates the overall unemployment rate based
on a survey of American households, and because the lackluster economy
wasn't producing enough jobs to accommodate increasing number of
job-seekers, that rate increased significantly.
Manufacturing led in payroll cuts last month, with 56,000 jobs lost.
Since July 2000, the nation's factories have cut 2.6 million jobs.
That sector has been the weakest link in the economy's ability to get
back to full speed. Slack demand at home and abroad and competition
from a flood of imports have throttled back production.
Construction jobs helped offset manufacturing losses somewhat last
month, with the fourth straight gain in hiring. Construction has added
101,000 jobs since February, reflecting strength in residential
building.
The mortgage boom, stoked by record low rates, has been the bright
spot in the dismal economy. People are buying new homes and
refinancing their old mortgages. The extra cash from refinancing
combined with solid home-value appreciation have kept consumer
spending afloat.
Other hiring gains last month were in health care, leisure and
hospitality and temporary employment services.
In a separate report, new claims for jobless benefits rose last week
to 430,000, an increase of a seasonally adjusted 21,000 from the
previous week's revised 409,000 claims.
The more stable, four-week moving average of claims, which smooths out
weekly fluctuations, dropped to 425,000. That was the lowest level
since April 5.
by LEIGH STROPE, AP Labor Writer
WASHINGTON - The nation's unemployment rate shot up to 6.4 percent in
June, the highest level in more than nine years, in an economic slump
that has cost nearly a million jobs in the last three months.
Businesses slashed 30,000 jobs just last month, with cuts heavily
concentrated on factory assembly lines, the Labor Department (news -
web sites) reported Thursday.
The 0.3 percentage point increase from May's 6.1 percent rate was the
largest month-to-month rise since the Sept. 11, 2001 terror attacks.
That surprised analysts who predicted a smaller rise, to 6.2 percent.
The last time the overall rate was higher was in April 1994.
While recent economic indicators point to an economy struggling toward
recovery, the latest report demonstrated that America's job market was
still very much in a state of recession last month.
Since March, unemployment has increased by 913,000. Two million people
were unemployed for 27 weeks or more last month, an increase of
410,000 since the start of the year. Only in March 1994 was the
unemployment rate higher.
Another factor behind the increase in the overall civilian
unemployment rate was the increase in the number of people seeking
work in June. Optimism about an economy rebound led over 600,000
people to resume their search for work.
Because the government calculates the overall unemployment rate based
on a survey of American households, and because the lackluster economy
wasn't producing enough jobs to accommodate increasing number of
job-seekers, that rate increased significantly.
Manufacturing led in payroll cuts last month, with 56,000 jobs lost.
Since July 2000, the nation's factories have cut 2.6 million jobs.
That sector has been the weakest link in the economy's ability to get
back to full speed. Slack demand at home and abroad and competition
from a flood of imports have throttled back production.
Construction jobs helped offset manufacturing losses somewhat last
month, with the fourth straight gain in hiring. Construction has added
101,000 jobs since February, reflecting strength in residential
building.
The mortgage boom, stoked by record low rates, has been the bright
spot in the dismal economy. People are buying new homes and
refinancing their old mortgages. The extra cash from refinancing
combined with solid home-value appreciation have kept consumer
spending afloat.
Other hiring gains last month were in health care, leisure and
hospitality and temporary employment services.
In a separate report, new claims for jobless benefits rose last week
to 430,000, an increase of a seasonally adjusted 21,000 from the
previous week's revised 409,000 claims.
The more stable, four-week moving average of claims, which smooths out
weekly fluctuations, dropped to 425,000. That was the lowest level
since April 5.
