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.
TEXT SIZE - +
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
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

Wikipedia Proves Useful for Tracking Flu

Technique gave better results than Center for Disease Control (CDC) and Google’s Flu Trends More

Turkish Law Gives Spy Agency Controversial Powers

Parliament approves legislation to bolster powers of intelligence service, which government claims is necessary to modernize and deal with new threats Turkey faces More

Video Face of American Farmer Changing

Average American farmer is now 58 years old, and farmers 65 and older are the fastest growing segment of the population 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.
Face of American Farmer is Changingi
X
Mike Osborne
April 18, 2014
The average American farmer is now 58 years old, and farmers 65 and older are the fastest growing segment of the population. It’s a troubling trend signaling big changes ahead for American agriculture as aging farmers retire. Reporter Mike Osborne says a new report from the U.S. Census Bureau is suggesting what some of those changes might look like... and why they might not be so troubling.
Video

Video Face of American Farmer is Changing

The average American farmer is now 58 years old, and farmers 65 and older are the fastest growing segment of the population. It’s a troubling trend signaling big changes ahead for American agriculture as aging farmers retire. Reporter Mike Osborne says a new report from the U.S. Census Bureau is suggesting what some of those changes might look like... and why they might not be so troubling.
Video

Video Donetsk Governor: Ukraine Military Assault 'Delicate But Necessary'

Around a dozen state buildings in eastern Ukraine remain in the hands of pro-Russian protesters who are demanding a referendum on self-rule. The governor of the whole Donetsk region is among those forced out by the protesters. He spoke to VOA's Henry Ridgwell from his temporary new office in Donetsk city.
Video

Video Drones May Soon Send Data From High Seas

Drones are usually associated with unmanned flying vehicles, but autonomous watercraft are also becoming useful tools for jobs ranging from scientific exploration to law enforcement to searching for a missing airliner in the Indian Ocean. VOA’s George Putic reports on sea-faring drones.
Video

Video New Earth-Size Planet Found

Not too big, not too small. Not too hot, not too cold. A newly discovered planet looks just right for life as we know it, according to an international group of astronomers. VOA’s Steve Baragona has more.
Video

Video Copts in Diaspora Worry About Future in Egypt

Around 10 percent of Egypt’s population belong to the Coptic faith, making them the largest Christian minority in the Middle East. But they have become targets of violence since the revolution three years ago. With elections scheduled for May and the struggle between the Egyptian military and Islamists continuing, many Copts abroad are deeply worried about the future of their ancient church. VOA religion correspondent Jerome Socolovsky visited a Coptic church outside Washington DC.
Video

Video Critics Say Venezuelan Protests Test Limits of Military's Support

During the two months of deadly anti-government protests that have rocked the oil-rich nation of Venezuela, President Nicolas Maduro has accused the opposition of trying to initiate a coup. Though a small number of military officers have been arrested for allegedly plotting against the government, VOA’s Brian Padden reports the leadership of the armed forces continues to support the president, at least for now.
Video

Video More Millenials Unplug to Embrace Board Games

A big new trend in the U.S. toy industry has more consumers switching off their high-tech gadgets to play with classic toys, like board games. This is especially true among the so-called millenial generation - those born in the 1980's and 90's. Elizabeth Lee has more from an unusual café in Los Angeles, where the new trend is popular and business is booming.
Video

Video Google Buys Drone Company

In its latest purchase of high-tech companies, Google has acquired a manufacturer of solar-powered drones that can stay in the air almost indefinitely, relaying broadband Internet connection to remote areas. It is seen as yet another step in the U.S. based Web giant’s bid to bring Internet to the whole world. VOA’s George Putic reports.
AppleAndroid

World Currencies

EUR
USD
0.7217
JPY
USD
102.17
GBP
USD
0.5949
CAD
USD
1.1009
INR
USD
60.326

Rates may not be current.