62,000 jobs lost across the nation; worse is yet to come
62,000 jobs lost across the nation; worse is yet to come
Comments 
1
By Jeannine Aversa
Published: July 4, 2008
WASHINGTON — Unemployment lines, painfully long in parts of the country this July Fourth, are only going to get longer.
Featured Gallery
Advertisement
Unemployment could worsen
In June alone, employers got rid of 62,000 jobs, bringing total losses so far this year close to a staggering half-million — 438,000, according to the Labor Department's report released Thursday. The economy needs to generate more than 100,000 new jobs a month for employment to remain stable.
The jobless rate held steady at 5.5 percent after jumping in May by the most in two decades. Still, June's jobless rate was considerably higher than the 4.6 percent of a year ago. And it is expected to climb through the rest of this year and top 6 percent early next year.
"The economy will get worse before it gets better,” said Sung Won Sohn, an economics professor at California State University.
When companies do have openings, job hunters are in for more competition.
"I get resumes upon resumes upon resumes when I put up job postings,” said Jeff Posner, president and owner of e-ventsreg.com, a small New Jersey firm that handles registration and check-ins for trade shows.
There were 8.5 million unemployed people as of June, up from 7 million a year earlier.
Heavy job losses were reported in construction, manufacturing and financial services — the worst casualties of the housing, credit and financial debacles. Cutbacks also came in retailing, temporary help, trucking, publishing and elsewhere.
That more than swamped job gains in other places including health care, education, hotels, bars and restaurants and the government.
Other weak spots
Other economic news revealed more weak spots.
•The number of newly laid off people signing up for unemployment insurance rose sharply last week. New applications jumped by 16,000 to 404,000, the highest level since late March.
•The nation's service sector — generally an engine for the economy — contracted in June. The Institute for Supply Management's index of the service sector fell to 48.2 in June from 51.7 in May. A reading below 50 signals activity is shrinking, while a reading above that suggests activity is expanding.
Related Topics:
Business, Economic Indicators, Jobs and Labor, Labor Market, Unemployment Rate, Layoffs and Downsizing, Job Searching, Job Losses, Job Growth
Prev
Something to say about this topic? Submit a Letter to the Editor online
Thank you for joining our conversations on newsok. We encourage your discussions but ask that you stay within the bounds of our terms and conditions. Please help us by reporting comments that violate these guidelines. To review our rules of engagement, go to Commenting and posting policy.
Log in below or sign up (it's free).