May Jobs Report Shows Unemployment Rate Rising, Weak Labor Market
The May jobs report show the unemployment rate rising to 7.6 percent.
As previously reported by The Inquisitr, the May jobs report may be bad for America, but at least we don’t have to face the Euro zone’s rising unemployment rate of 12.2 percent.
The May jobs report for 2013 shows the US economy stuck at two percent annual growth, which is not fast enough to keep everyone employed. There was a net total of 175,000 new jobs created in May, but apparently many Americans are giving up on finding jobs again.
The US unemployment rate only considers people who are actively seeking work, which throws off the numbers. If you include the underemployment rate, which means part-timers who want full-time jobs, then the unemployment rate in the US is actually at 13.8 percent.
Economist Dean Baker of the Center for Economic and Policy Research points out the May jobs report show the only major job growth is is in low end jobs like restaurants, retail, and temporary/seasonal jobs:
“These are all low-paying sectors. It is worth noting that the job growth reported in these sectors is more an indication of the weakness of the labor market than the type of jobs being generated by the economy. The economy always creates bad jobs, but in a strong labor market workers don’t take them.”
The May jobs report is causing the Fed to say they’re unlikely to quickly end quantitative easing (QE) policies that have supported asset prices. This means interest rates are likely to remain low for the foreseeable future, which will cause stock prices to rise.
How do you think we should respond to the May jobs report showing the US unemployment rate rising?
