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

Video On the Scene: In Gaza, Darkness Brings Dread and Death

Palestinians fear nighttime raids, many feel abandoned by outside world, VOA's Scott Bobb reports More

African Small Farmers Could Be Key to Ending Food Insecurity

Experts say providing access to microloans, crop insurance, better storage facilities, irrigation, road systems and market information could enable greater production More

University of Michigan Wins Solar Car Race

Squad guided its student-designed solar-powered vehicle to fifth consecutive time victory in eight-day bi-annual American Solar Challenge 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.
Vietnamese Staging Chinese Product Boycott After Oil Rig Spati
X
Reasey Poch
July 28, 2014 7:18 PM
China recently pulled an oil rig from an area of the disputed South China Sea that Vietnam also claims. Despite the action, the incident has had a lingering effect on consumers in Vietnam. VOA's Reasey Poch reports from Hanoi on an effort to boycott Chinese products.
Video

Video Vietnamese Staging Chinese Product Boycott After Oil Rig Spat

China recently pulled an oil rig from an area of the disputed South China Sea that Vietnam also claims. Despite the action, the incident has had a lingering effect on consumers in Vietnam. VOA's Reasey Poch reports from Hanoi on an effort to boycott Chinese products.
Video

Video ESA Spacecraft to Land on a Comet

After a long flight through deep space, a European Space Agency probe is finally approaching its target -- a comet millions of kilometers away from earth. Scientists say the mission may lead to some startling discoveries about the origins of the water on earth. VOA’s George Putic has more.
Video

Video Young Africans Arrive in US for Leadership Program

President Barack Obama's Young African Leadership Initiative has brought hundreds of young Africans to the United States for a six-week program aimed at building their knowledge and skills in fields such as public administration and business. Out of the 50,000 young Africans who applied for the program, just one percent was accepted. VOA's Laurel Bowman caught up with some of those who made the cut and has this report.
Video

Video In Honduras, Amnesty Rumors Fuel US Migration Surges

False rumors in Central America are fueling the current surge of undocumented young people being apprehended at the U.S. border. The inaccurate claims suggest the U.S. will give amnesty to young migrants from the region. As VOA's Brian Padden reports from Honduras, these rumors trace back to President Obama's 2012 executive order to halt deportations for some young undocumented immigrants already living in the United States.
Video

Video Students in Business for Themselves

They're only high school students, but they are making accessories for shoes, fabricating backpacks and doing product photography - all through their own businesses. It's the result of a partnership between a non-profit organization that teaches entrepreneurship and their schools. VOA's Mike O'Sullivan and Deyane Moses met the budding entrepreneurs near Los Angeles.
Video

Video Astronauts Train in Underwater Lab

In the world’s only underwater laboratory, four U.S. astronauts train for a planned visit to an asteroid. The lab - called Aquarius- is located five kilometers off Key Largo, in southern Florida. Living in close quarters and making excursions only into the surrounding ocean, they try to simulate the daily routine of a crew that will someday travel to collect samples of a rock orbiting far away from earth. VOA’s George Putic has more.

AppleAndroid

World Currencies

EUR
USD
0.7305
JPY
USD
101.53
GBP
USD
0.5830
CAD
USD
1.0656
INR
USD
60.075

Rates may not be current.