The U.S. labor market continued
its moderate pace of expansion in July, but the widely-scrutinized
unemployment rate ticked up by one-tenth of a percentage point,
sparking clashes between Democrats and Republicans on the priorities
of U.S. economic policies.
MIXED MESSAGE
The U.S. non-farm sector added 163,000 new jobs across the
country last month, the best pace of hiring in five months, the
Labor Department's establishment survey data collected from private
and public sector employers showed on Friday.
U.S. private employers added 172,000 jobs, but did not surpass
the threshold of 200,000 deemed by some economists as strong enough
to reduce the unemployment rate quickly.
Manufacturing employment continued to expand and manufacturers
added 25,000 jobs in July, and retail trade added 6,700 jobs last
month. Professional and business services including accounting and
legal services added 49,000 jobs. The construction sector shed 1,
000 jobs, and utilities industry employment declined by 8,100.
Government employment declined by 9,000 in July amid spending
cuts. Since February 2010, U.S. state and local governments have
lost 485,000 jobs, figures from the White House revealed.
The jobs creation figure was upwardly revised to 87,000 for May
from the previous estimate of 77,000, and was downwardly revised to
64,000 for June from the previous reading of 80,000.
However, the household survey data collected by the department
showed that the unemployment rate ratcheted up from 8.2 percent in
June to 8.3 percent in July, evidence of a still bleak picture of
the economic recovery, as the unemployment has stayed above 8
percent since February 2009.
Total unemployed Americans topped 12.8 million in July, nearly
the same as in June and still almost double the level prior to the
recession. The number of long-term unemployed who have been jobless
for at least 27 weeks stood at 5.2 million.
The department uses two sets of surveys,with one establishment
survey, or business survey, showing job gains, and the other
household survey showing unemployment rate fluctuation. The
establishment survey was considered as a more reliable reading of
the economic trend.
After the release of the latest jobs report, U.S. stocks rallied
on Friday, snapping a four-day losing streak, with the blue-chip Dow
Jones industrial average advancing about 1.7 percent on the close.
OPPOSING VIEWS
As U.S. economic recovery has become the major talking point in
the election year, the sub-par job report attracted starkly opposing
views on the U.S. economic recovery from the White House and
Republicans.
The latest report provided further evidence the U.S. economy
continued to recover from the worst downturn since the Great
Depression, White House Council of Economic Advisers chairman Alan
Krueger said Friday in a statement.
The top White House economist stressed that the household survey
data showed that the unemployment rate only edged up from 8. 217
percent in June to 8.254 percent in July, or essentially unchanged.
An up-tick of unemployment rate with three month to go before the
election day was bad news for any incumbent president. An
unemployment rate touching below 8 percent by the election day was a
milestone considered as a symbolic victory for U.S. President Barack
Obama's economic records.
"It is critical that we continue the policies that build an
economy that works for the middle class as we dig our way out of the
deep hole that was caused by the severe recession that began in
December 2007," said Krueger, adding that Obama has proposed an
extension of middle class tax cuts that would prevent the typical
middle class family from facing a tax increase in the amount of 2,
200 U.S. dollars next year.
Campaigning in the U.S. state of Nevada, Republican presidential
hopeful Mitt Romney charged that the unemployment rate has hovered
above 8 percent for 42 consecutive months, the longest period of
such lingering high unemployment situation in American history, as
Obama's economic policy has failed.
Speaking at the White House at an event flanked by middle-class
Americans, Obama stressed that the last thing the nation should do
in the weak economic recovery was tax increase on middle class
families, adding that "when families have the security of knowing
that their taxes won't go up, they're more likely to spend, and more
likely to grow the economy."
With his economic records under attack by his Republican foes,
Obama was endeavoring to shift the focus of discussions to economic
fairness and portray himself as the defender of the middle class
families and supporter of popular spending programs including
education and transportation.
But with a gridlocked Congress unlikely to pass any substantial
fiscal stimulus programs before the election and the Federal Reserve
holding fire for further monetary easing measures, Obama was stuck
with an economy losing steam.
The Fed predicted in June that the U.S. economy would only grow
between 1.9 percent and 2.4 percent this year, weaker than the range
of 2.4 percent to 2.9 percent in its April projection. The central
bank didn't expect the nation's unemployment rate to fall below 8
percent by the end of this year.
