Today Washington announced that hiring slowed to a near-standstill in June leading to speculation that the economy will not be rebounding any time soon. This surpised many economists who predicted much stronger job creation. It also fired up the debate in Washington over how to create jobs while cutting spending.
Here is the bad news: In June only 18,000 net jobs were created which is the fewest in nine months. The unemployment rate rose to 9.2 percent which is the highest rate of the year acording to the Labor Department. If you account for "discouraged" workers and part timers who would prefer full-time work, then the "under-employment" rate jumped from 15.8 percent to 16.2 percent. This resulted from businesses adding just 57,000 jobs last month (the fewest in more than a year). Governments cut 39,000 jobs, bringing the total over the past eight months to a combined 238,000 positions.
The bad news caused stocks to plunge. By Friday afternoon the Dow sank more than 100 points . In a speech from the White House, President Barack Obama stated that, "our economy as a whole just isn't producing nearly enough jobs for everybody who is looking," He also used this new data to push Congress to raise the government's borrowing limit.
In the midst of this bad news, I would like to offer some good. Both Accountants One and The Waters Organizations had their best months of 2011 in June. Not that you should care about our sales, but certainly our mini-econonomic barometer shows that hiring is taking place. In fact, if you look at our sales since the beginning of the year you'd see slow and steady growth. Not that we're close to pre-2008 numbers, but every week is consistently better than the previous.
And in a very unscientific analysis of this hiring trend, I see the greatest increase of hiring activity within the small to mid-sized company arena. The large corporate entities continued hiring during the down-turn, but the smaller companies almost exited the field. I think it is a very promising sign to see them back at the hiring table.
Hope that bit of good news goes a long way! |