US Jobless Spikes up to 9.2 Percent in June
Two years after the global financial crisis, the number of unemployed Americans was still at 9.2 percent as of June 2011.
But economists expect improvements in the second half of this year as the economy began to stabilize.
The United States government on Friday said that that the number of unemployed Americans increased to 9.2 percent as companies stalls hiring.
In its report, the US Labor Department said that the economy was only able to generate some 18,000 new jobs in June because of economic uncertainties – it was the fewest in nine months.
The report also showed that private companies hired only 57,000 during the period, also the fewest in over a year.
Many economists said that businesses are now adding fewer jobs to their portfolio despite record cash liquidity and profit margins two years after the global financial crisis.
They also said that companies are pulling back from hiring new people after averaging at a monthly rate of 215,000 new hires from February to April 2011.
“The slow down in hiring and jobs creation is expected since the economy typically needs to add some 125,000 jobs on a monthly basis in order to keep up with the population growth. But we need at least twice the number for us to bring down the jobless rate,” an economist said.
He also said that the economy may likely improve in the second semester of 2011, saying that gas prices started to stabilize and expansions in the manufacturing sector have started to pick up.