Only 69,000 new jobs were created in May. That is 50% of the forecast for job growth. Job growth in April was also revised downward from 115,000 to 77,000. The US labor market requires at least 125,000 new jobs per month to keep the unemployment rate steady.
The crisis in Europe, and slow growth in the US, reinforce each other. The US is a large market for European exports, and the European market is a large source of revenue for US multinational corporations. Businesses will sit tight, and put off investments in this kind of environment. The looming US elections in 2012 will also negate any political response to the job market. The GOP would rather go into the elections with a slow economy. Mitt Romney is already blaming Obama's economic policies for the slow growth in jobs.
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