US hiring sputters in June pressuring FED
WASHINGTON - Reuters
Activists take part in a protest near the Capitol Building in Washington, DC. The economy created 1,000 fewer jobs during April and May than previously thought. AFP photoU.S. employers hired at a dismal pace in June, raising pressure on the Federal Reserve to do more to boost the economy and further imperiling President Barack Obama’s chances of reelection in November.
The Labor Department said on July 6 non-farm payrolls expanded by just 80,000 jobs in June, falling short of forecasts though a tad higher than a revised May reading of 77,000. Job creation during the month wasn’t enough to bring down the country’s lofty 8.2 percent unemployment rate. The report appeared sure to fuel concerns that Europe’s debt crisis is shifting the U.S. economy into low gear.
“There’s just not a lot of momentum in the economy,” said Sam Bullard, an economist at Wells Fargo & Co in Charlotte, North Carolina.
Mitt Romney, Obama’s Republican challenger, is focusing his campaign on the weak jobs market that has dogged Obama’s presidency.
The details of the report were also unsettling. The government said the economy created 1,000 fewer jobs during April and May than previously estimated.
The somber report might push the Federal Reserve closer to taking new actions to lower borrowing costs to encourage companies to increase hiring. Analysts polled by Reuters expected an increase in payrolls of 90,000 jobs.