Only 18,000 jobs were created in June
Earlier today, the Bureau of Labor Statistics released the unemployment figures for June 2011 – the news was not good. The unemployment rate now stands at 9.2% compared to May’s rate of 9.1%. Also, only 18,000 jobs were created in May and 545,000 people have lost their job since March. Still, some 14.1 million people are without jobs.
As you know, jobs are what keep the economy alive and growing. And if these dismal unemployment figures continue to worsen, we may be headed for a double-dip recession. Some point to the recent strengths of the stock market as evidence the economy is strong. However, U.S. companies have been earning more profit overseas, a main cause of increasing stock prices. This may sound beneficial, but we need growth in the United States – we need the jobs/growth here.
Get this: there are 6.3 million people who have been unemployed for more than 27 weeks. No wonder why a recent Bankrate.com survey showed that only 24% of Americans have enough money saved up in an emergency savings account to cover six months of expenses. How can you save money if you don’t have a job?
Areas of Job Growth and Decline
There’s not much silver lining in this report, but here are the industries that are performing relatively well when it comes to job creation: health care (up 14,000 jobs), business/technical services (up 24,000 jobs) and hospitality (up 34,000).
Jobs in government fell by 39,000 and construction jobs were flat in June.
How Do We Create Jobs?
Earlier today, President Obama addressed the nation about today’s unemployment figures. The President offered some solid ideas to create more jobs, such as speeding up the patent process to assist entrepreneurs and focusing on reviving the real estate market. Here are a few other ideas:
- Less regulation so small business owners aren’t scared to expand
- Less taxes
- Incentives for small business owners to expand
- Review the financial reform bill from last year — again, we can’t discourage small business owners – they’re the ones who provide the most jobs.