News / Economy

US Adds 175,000 Jobs, Jobless Rate Edges Higher

Job seeker Anu Vatal of Chicago, speaks with Patrice Tosi of BluePay, seated, during a career fair in Rolling Meadows, Ill., May 29, 2013.
Job seeker Anu Vatal of Chicago, speaks with Patrice Tosi of BluePay, seated, during a career fair in Rolling Meadows, Ill., May 29, 2013.
VOA News
The U.S. said that its labor market added another 175,000 jobs last month, but its jobless rate edged higher to 7.6 percent as more Americans looked for work.

The job growth exceeded the expectation of most analysts. But economist Mark Vitner at the Wells Fargo bank told VOA that many of the new jobs are in low-paying occupations, somewhat negating the favorable news.

"When you dig within the number you see that a very large proportion, nearly 60 percent of the jobs that were added, came in low-paying occupations, things like retail trade, leisure and hospitality, temporary staffing and home health care. And for that reason, they’re not likely to see a whole lot of income growth out of these numbers," Vitner said.

Related report by Mil Arcega:

US Adds 175,000 Jobs; Unemployment Rate Ticks Higheri
X
June 07, 2013 11:09 PM
The U.S. economy gained 175,000 jobs in May, the latest in a string of mostly upbeat economic reports that has prompted thousands of Americans to resume their hunt for work. People are not counted as unemployed unless they are actively seeking work, so the surge of people rejoining the job search had the ironic effect of raising the unemployment rate slightly. Mil Arcega has more.

The White House noted that the U.S. economy has now added jobs for 39 months in a row, including nearly a million this year.

But the country's unemployment rate remains well above the country's long-term 5.8 percent average, even though it is still near a 4.5 year low, before the country was hit with a sharp economic downturn.

Analysts are questioning how much the jobless rate might fall in the coming months as the country's central bank, the Federal Reserve, decides whether to trim its massive support of the economy through large-scale bond purchases.

Vitner said the American economy seems to have slowed since April, down from the 2.4 percent advance in the first quarter of the year.  “I think we’re going to be hard-pressed to get economic growth much above 2 percent in the second half of the year,” he stated.

Friday's report said 11.8 million people were still looking for work in May, little changed from April, when the jobless rate was 7.5 percent.

The government said Friday that employment increased last month in professional and business services, restaurants and retail stores.  

The country's major stock indexes are at near record highs, but employers have been slow to start large-scale hiring. Some industries have grown, then stalled again. The country's housing market has shown signs of recovering in recent weeks, and consumers have increased their spending this year.

A recent survey of about 1,100 key financial and management officers of companies across the country shows they are growing more optimistic and have more plans to expand.

But the survey of members of the American Institutes of CPAs shows only a slight increase in the number of firms that plan to boost hiring soon.  CPA Jim Blake said economic growth is welcome, but will have to speed up before there is a surge in hiring.  He spoke to VOA via Skype.

"It's going to take a lot more feeling that they are going to get a return on that investment before they open the flood gates," Blake said. "When you look at the survey, they do have a question related to do you have enough manpower?  Do you have enough people on staff?  By and far, during the quarterly survey people said, 'We are doing just fine.'"

You May Like

Is West Doing Enough to Tackle Islamic State?

There is growing uncertainty over whether West’s response to ISIS is adequate More

China Crackdown on Dual Citizens Causes Concern

New policy encourages reporting people who obtain citizenship in another country, but retain Chinese citizenship; move spurs sharp debate More

Video Coalition to Fight Islamic State Could Reward Assad

Losing ground to Islamic State fighters, Syria's government says it is ready to cooperate with international community More

This forum has been closed.
Comments
     
There are no comments in this forum. Be first and add one

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
Ukraine Accuses Russia of Territorial Incursionsi
X
Zlatica Hoke
August 28, 2014 4:07 AM
Ukraine says a key border town (Novoazovsk) and surrounding areas of in southeastern Ukraine have fallen under the control of Russia's military. President Poroshenko says "Russian troops have actually been brought into Ukraine." Despite repeated denials from Moscow, Ukraine accuses the Kremlin of providing weapons and fighters to separatists in eastern Ukraine, toward the Russian leadership's alleged goal of annexing that strategic territory. Zlatica Hoke reports.
Video

Video Ukraine Accuses Russia of Territorial Incursions

Ukraine says a key border town (Novoazovsk) and surrounding areas of in southeastern Ukraine have fallen under the control of Russia's military. President Poroshenko says "Russian troops have actually been brought into Ukraine." Despite repeated denials from Moscow, Ukraine accuses the Kremlin of providing weapons and fighters to separatists in eastern Ukraine, toward the Russian leadership's alleged goal of annexing that strategic territory. Zlatica Hoke reports.
Video

Video Made in America Socks Get Toehold in Online Fashion Market

Three young entrepreneurs are hoping to revolutionize the high-end sock industry by introducing all-American creations of their own. And they’re doing most of it the old-fashioned way. VOA’s Julie Taboh recently caught up with them to learn what goes into making their one-of-a-kind socks.
Video

Video Americans, Ex-Pats Send Relief Supplies to West Africa

Health organizations from around the world are sending supplies and specialists to the West African countries that are dealing with the worst Ebola outbreak in history. On a smaller scale, ordinary Americans and African expatriates living in the United States are doing the same. VOA's Carol Pearson reports.
Video

Video America's Most Popular Artworks Displayed in Public Places

Public places in cities across America were turned into open-air art galleries in August. Pictures of the nation’s most popular artworks were displayed on billboards, bus shelters, subway platforms and more. The idea behind “Art Everywhere,” a collaborative campaign by five major museums is to allow more people to enjoy art and learn about the country’s culture and history. Faiza Elmasry has more.
Video

Video Chinese Doctors Use 3-D Spinal Implant

A Chinese boy suffering from a debilitating bone disease has become the first patient with a part of his spine created in a three-dimensional printer. Doctors say he will soon regain normal mobility. VOA’s George Putic reports.
Video

Video Uneasy Calm Settles Over Israel, Gaza Strip

Israel and the Gaza Strip have been calm since a cease-fire set in Tuesday evening, ending seven weeks of hostilities. Hamas, which controls Gaza, declared victory. Israelis were more wart. VOA’s Scott Bobb reports from Jerusalem.
Video

Video India’s Leprosy Battle Stymied by Continuing Stigma

Medical advancements in the treatment of leprosy have greatly diminished its impact around the world, largely eliminating the disease from most countries. India made great strides in combating leprosy, but still accounts for a majority of the world’s new cases each year, and the number of newly infected Indians is rising - more than 130,000 recorded last year. Doctors there say the problem has more to do with society than science. Shaikh Azizur Rahman reports from Kolkata.
Video

Video Scientists Unlock Mystery of Bird Flocks

How can flocks of birds, schools of fish or herds of antelope suddenly change direction -- all the individuals adjusting their movement in concert, at seemingly the same time? British researchers now have some insights into this behavior, which has puzzled scientists for a long time. VOA's George Putic has more.

AppleAndroid

World Currencies

EUR
USD
0.7537
JPY
USD
103.79
GBP
USD
0.6032
CAD
USD
1.0957
INR
USD
60.522

Rates may not be current.