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

Scotland Vote Raises Questions of International Law

Experts say self-determination, as defined and protected by international law, confined narrowly to independence movements in process of de-colonization More

Video Whaling Summit Votes to Uphold Ban on Japan Whale Hunt

Conservationists hail ruling as a victory, but Tokyo says it will submit revised plans for a whale hunt in 2015 More

Annual Military Exercise Takes on New Meaning for Ukraine Troops

Troops from 15 nations participating in annual event, 'Rapid Trident' in western Ukraine 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.
Russian Economy Reeling After New Western Sanctionsi
X
September 18, 2014 2:28 AM
A new wave of Western sanctions is hitting Russia’s economy hard. State-owned energy firms continue to bleed profits and Russia’s national currency plunged to a new low this week after the U.S. and the European Union announced new sanctions to punish Russia's aggressive stance in eastern Ukraine. But as Mil Arcega reports, the sanctions could also prove costly for European and American companies.
Video

Video Russian Economy Reeling After New Western Sanctions

A new wave of Western sanctions is hitting Russia’s economy hard. State-owned energy firms continue to bleed profits and Russia’s national currency plunged to a new low this week after the U.S. and the European Union announced new sanctions to punish Russia's aggressive stance in eastern Ukraine. But as Mil Arcega reports, the sanctions could also prove costly for European and American companies.
Video

Video Belgian Researchers Discover Way to Block Cancer Metastasis

Cancer remains one of the deadliest diseases, despite many new methods to combat it. Modern medicine has treatments to prevent the growth of primary tumor cells. But most cancer deaths are caused by metastasis, the stage when primary tumor cells change and move to other parts of the body. A team of Belgian scientists says it has found a way to prevent that process. Zlatica Hoke has more.
Video

Video Mogadishu's Flood of Foreign Workers Leaves Somalis Out of Work

Unemployment and conflict has forced many young Somalians out of the country in search of a better life. But a newfound stability in the once-lawless nation has created hope — and jobs — which, some say, are too often being filled by foreigners. Abdulaziz Billow reports from Mogadishu.
Video

Video A Dinosaur Fit for Land and Water

Residents and tourists in Washington D.C. can now examine a life-size replica of an unusual dinosaur that lived almost a hundred million years ago in northern Africa. Scientists say studying the behemoth named Spinosaurus helps them better understand how some prehistoric animals adapted to life on land and in water. The Spinosaurus replica is on display at the National Geographic museum. VOA’s George Putic has more.
Video

Video Iraqi Kurdistan Church Helps Christian Children Cope find shelter in churches in the Kurdish capital, Irbil

In the past six weeks, tens of thousands of Iraqi Christians have been forced to flee their homes by Islamic State militants and find shelter in churches in the Kurdish capital, Irbil. Despite U.S. airstrikes in the region, the prospect of people returning home is still very low and concerns are starting to grow over the impact this is having on the displaced youth. Sebastian Meyer reports from Irbil on how one church is coping.
Video

Video NASA Picks Boeing, SpaceX to Carry Astronauts Into Space

The U.S. space agency, NASA, has chosen Boeing and SpaceX companies to build the next generation of spacecraft that will carry U.S. astronauts to the International Space Station by the year 2017. The deal with private industry enables NASA to end its dependence on Russia to send space crews into low Earth orbit and back. Zlatica Hoke has more.
Video

Video Future of Ukrainian Former President's Estate Uncertain

More than six months after Ukraine's former President Viktor Yanukovych fled revolution to Russia, authorities have yet to gain control of his palatial estate. Protesters occupy the grounds and opened it to tourists but they are also refusing to turn it over to the state. VOA's Daniel Schearf reports from Mezhigirya, just north of Kyiv.
Video

Video China Muslims Work to Change Perceptions After Knife Attacks

China says its has sentenced three men to death and one woman to life in prison for a deadly knife attack in March that left more than 30 dead and 140 injured. Beijing says Muslim militants from China's restive western region of Xinjiang carried out the attacks. Now, more than six months after the incident, residents in the city are still coping with the aftermath. VOA's Bill Ide has more from Kunming.


Carnage and mayhem are part of daily life in northern Nigeria, the result of a terror campaign by the Islamist group Boko Haram. Fears are growing that Nigeria’s government may not know how to counter it, and may be making things worse. More

AppleAndroid

World Currencies

EUR
USD
0.7768
JPY
USD
108.84
GBP
USD
0.6124
CAD
USD
1.0999
INR
USD
61.042

Rates may not be current.