Job shortage for young people
American employers eliminated 51,000 jobs in July, the seventh consecutive contraction in the labour market, as the unemployment rate reached a four-year high, signs that the pressure on business owners and consumers was likely to continue.
Still, last Friday’s report from the U.S. Labor Department showed that the declines have softened since spring. The number of layoffs was less than the 75,000 that economists had expected, and the government said that businesses cut fewer jobs in June and May than first thought.
"The good news is there’s been no acceleration in the official data," Robert Barbera, the chief economist of ITG, an economic research company.
"The bad news is there’s nothing about the data that suggests improvement anytime soon."
The rough job market worsened in July, with the unemployment rate rising to 5.7 percent from 5.5 percent in June, its highest level since March 2004.
"It’s not that unemployment is rising because a lot of people are coming into the labour force," Mark Zandi, the chief economist at Moody’s Economy.com, said. "It’s rising because employment is falling."
Part of the problem is a paucity of jobs for young people, one out of five of whom are unemployed. The teenage unemployment rate rose to 19 percent, its highest level in 16 years.
Last month’s job losses came in a broad range of industries, with manufacturing, construction and administrative services suffering the steepest declines. About 30,000 support staff workers were laid off, along with 35,000 manufacturing employees.
Workers in the transportation industry were hit hard by high oil prices, which have weighed heavily on bottom lines. About 5,000 truck drivers were laid off, and airlines also trimmed their work forces.
Stocks on Wall Street were trading lower, with the Dow Jones industrials down about 50 points, as investors digested the jobs report and a $15.5-billion quarterly loss at General Motors.
Businesses have been cutting workers since the start of the year as they try to make ends meet amid a slowdown. While export sales have risen, many American customers have ratcheted back their spending to cope with expensive fuel and food and the ailing housing market.
Still, last Friday’s report from the U.S. Labor Department showed that the declines have softened since spring. The number of layoffs was less than the 75,000 that economists had expected, and the government said that businesses cut fewer jobs in June and May than first thought.
"The good news is there’s been no acceleration in the official data," Robert Barbera, the chief economist of ITG, an economic research company.
"The bad news is there’s nothing about the data that suggests improvement anytime soon."
The rough job market worsened in July, with the unemployment rate rising to 5.7 percent from 5.5 percent in June, its highest level since March 2004.
"It’s not that unemployment is rising because a lot of people are coming into the labour force," Mark Zandi, the chief economist at Moody’s Economy.com, said. "It’s rising because employment is falling."
Part of the problem is a paucity of jobs for young people, one out of five of whom are unemployed. The teenage unemployment rate rose to 19 percent, its highest level in 16 years.
Last month’s job losses came in a broad range of industries, with manufacturing, construction and administrative services suffering the steepest declines. About 30,000 support staff workers were laid off, along with 35,000 manufacturing employees.
Workers in the transportation industry were hit hard by high oil prices, which have weighed heavily on bottom lines. About 5,000 truck drivers were laid off, and airlines also trimmed their work forces.
Stocks on Wall Street were trading lower, with the Dow Jones industrials down about 50 points, as investors digested the jobs report and a $15.5-billion quarterly loss at General Motors.
Businesses have been cutting workers since the start of the year as they try to make ends meet amid a slowdown. While export sales have risen, many American customers have ratcheted back their spending to cope with expensive fuel and food and the ailing housing market.
Labels: layoffs, the jobs report, unemployment, youth
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