Unemployment Rate Rises in June

Manufacturing job losses in the U.S. continue to rise in 2009.

The weekly unemployment numbers from the U.S. Department of Labor are out, and so are the monthly numbers and view from the Bureau of Labor Statistics (part of the DoL).

The highlights for June 2009 are as follows:

• The unemployment rate is 9.5 percent
• Payroll declined 476,000
• 14.7 million people are unemployed
• Job losses continue in manufacturing, business and professional services, and construction

And then there’s this little nugget, also from the BLS report: “The number of long-term unemployed (those jobless for 27 weeks or more) increased by 433,000 over the month to 4.4 million.  In June, 3 in 10 unemployed persons were jobless for 27 weeks or more. ”

So, the rate at which people are staying on unemployment is increasing, creating a larger mass of job seekers as 2009 progresses.

When will it end? There isn’t a good indication, but for the short term unemployment is expected to top 10 percent in 2009. For a slightly deeper look at how things are in June and beyond, this Bloomberg news article says:

Unemployment will “remain painfully high for several more years,” Federal Reserve Bank of San Francisco President Janet Yellen said this week. “I expect that we will turn the growth corner sometime later this year, but I am not optimistic that the economy will spring back to normal any time soon.”

Tax cuts and Social Security payments under the stimulus plan propped up incomes last quarter, supporting household purchases. Consumer spending rose in May as earnings climbed 1.4 percent, the most in a year.

Still, the wealth destruction caused by the housing and stock-market slumps prompted Americans to rebuild nest eggs. The savings rate in May surged to a 15-year high.

Americans have a little more in their wallets, spending a little, but also putting money away. But the larger job and job-loss picture in 2009 has many seeking new jobs, new careers and new sources of income.

Do you need job retraining? Is your industry suffering and need to rethink your career options?

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