Its official, the month of June is declared as the third consecutive month of disappointing job creation numbers.
The unemployment rate also stayed around approximately 8.2 percent which means the amount of jobs barely had an effect on the employment percentage. An economist for the Wells Fargo Fund whose name is Brian Jacobsen elaborates on how the job creation numbers is indicative of a stagnant summer.
It is estimated that at least 200,000 jobs are needed to assist the millions of individuals who are unemployed and out of work. For the month of June, only 84,000 jobs were created which was below the expected 90,000.
When looking at the numbers, the cumulative amount of jobs created in the past 3 months does not even add up to the total amount of jobs that were created in the month of January. The average amount of jobs created in the past 3 months is 91,000 which are far below the average of 226,000 for the first 3 months of the year. The stagnant creation of job numbers can be contributed to the erosion of jobs in the government and the disappointing changes in the amount of private jobs created. The stagnant amount of jobs created also indicates that the economy is extremely fragile.
An IMF (International Monetary Fund) manager declared that the outlook for the economy across the world is becoming much more worrisome.
Many of the economic indicators have decreased dramatically such as:
Many of the World’s central banks made a quick move just before the job numbers as they acted to ease the economies by allowing credit to be easily accessible. The U.S economy is also expecting a boost as an economic relief will be released by the Federal Reserve.
Overall, the job numbers are going to need to get better in order for the economy to recover at a faster rate.