Saturday, July 3, 2010

June Job Market Jolts Economy! The recovery in the labor market has slowed.

imageBy Rea Hederman, Jr. & James Sherk at Heritage

The June jobs report released by the Bureau of Labor Statistics revealed that while total employment had declined by 125,000 jobs, the unemployment rate dipped slightly to 9.5 percent from 9.7 percent. Private employment increased 83,000 jobs but was swamped by the ending of many temporary government jobs associated with the decennial census.

This is a weak labor market report, with the health of the labor market not improving even as the slow recovery continues. Job growth and wages in the private sector are still anemic, especially compared to government workers who have not experienced nearly the same amount of job losses. The American experiment in Keynesianism has not fared well…

The June jobs report illustrates that the recovery in the labor market has slowed. The labor market remains weak and job growth is elusive. Businesses are saving their cash as they worry about looming tax increases, government regulations, and below-average economic growth. Congress should resist efforts to pass another weak stimulus bill that would transfer resources from the private to the public sector. Instead, Congress should look to encourage private business development and formation through tax cuts and fewer regulations.
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