Job Growth Seen in July, but Unemployment Slightly Up

Written by CFB Blogger. Posted in Blog

Although U.S. employers added 209,000 jobs in July, those jobs were still fewer than in the previous three months. The government also increased its estimate of the job increases in May and June by a combined 15,000. And, although it was the sixth straight month of job growth above 200,000, the Federal Reserve, most likely, will not significantly raise interest rates in the foreseeable future. The unemployment rate increased slightly to 6.2% from 6.1% as more people looked for work. Although too many job-seekers failed to realize employment, the fact that more Americans are back to looking for work itself is an optimistic sign. This is because those who are unemployed are not counted as unemployed unless they are actively looking for jobs. From a story by the Associated Press in Crain’s Chicago Business, the increase in hiring “has yet to translate into larger paychecks for most Americans, a key factor that has hobbled the recovery. In July, average hourly earnings ticked up just a penny to $24.45. That’s just 2 percent higher than it was 12 months earlier and is slightly below current inflation of 2.1 percent. In a healthy economy, wages before inflation would rise 3.5 percent to 4 percent annually. Weak pay gains are restraining the housing market, usually a key driver of growth. A measure of signed contracts to buy homes slipped in June, the National Association of Realtors” recently averred. The Good News: *The U.S. government stated that consumer spending “rose at the fastest pace in three months in June, providing momentum for the economy going into the second half of the year”. *From the same article, “Higher-paying jobs showed strong increases in July. Manufacturing added 28,000 jobs, the most in eight months. Construction added 22,000 and financial services 7,000, its fourth straight gain.” Of interest: The Labor Department publishes nine gauges that are used to evaluate the overall strength of the labor market including: •     Monthly Number of New Jobs •     Unemployment Rate •     Share of Unemployed who have been out of work 27 weeks or longer •     Labor Force Participation Rate •     A measure of Underemployment with takes into account discouraged workers and part-timer who want to work    a full day •     Payroll Gains •     Pace of Layoffs and Discharges •     Job Openings Rate •     Labor Turnover Survey Six of these nine gauges remain well below Pre-Recession levels. The attorneys at Client First Bankruptcy have represented thousands of clients in their bankruptcy filings. If you are contemplating filing for a Chapter 7 or Chapter 13 personal bankruptcy due to continued unemployment, do not proceed without an experienced and knowledgeable bankruptcy attorney from Client First Bankruptcy at your side. For your free initial consultation, please call us toll-free at 800-383-6004; we answer our phone 8:30 a.m.-6:00 p.m. Central Time for your convenience. And log onto www.clientfirstbankruptcy.com for important information about your personal bankruptcy anytime.