After several poor months for job creation (adding well under 100,000 each month) we have some good news. Total nonfarm payroll employment rose by 163,000 in July, with the unemployment rate at 8.3%. Since the beginning of this year, employment growth has averaged 151,000 per month, about the same as the average monthly gain of 153,000 in 2011.
The change in total nonfarm payroll employment for May was revised from +77,000 to +87,000, and the change for June was revised from +80,000 to +64,000. Which means the total job gains for this report is 157,000 (163,000 +10,000 [for May] and -16,000 [for June]).
One of the continuing severe problems (since the credit crisis bubble burst) has been long term unemployment. In July, the number of long-term unemployed (those jobless for 27 weeks and over) was 5.2 million. These individuals accounted for 40.7% of the unemployed (a high figure historically).
Given all the problems created by the financial system failure (created over the last 15 years – in the USA and Europe) it is actually fairly amazing that we have been adding jobs nearly as much as we have. But climbing out of the huge whole we created for ourselves (by continually re-electing those that allowed the too-big-too-fail financial mess – and those we elect continue to reward their friends that created the mess instead of fixing it) is a huge task. It requires much better job creation than we have had this year.
Adding 150,000 jobs a month would be decent if we hadn’t created such a huge problem that digging out of it requires much better results. Moving back above that average is much better than being below it, but we really need to bring the new jobs created above 200,000 for a couple years to make a serious dent in the problems created earlier.
Related: USA add 117,000 Jobs in July 2011 and Adjusts Previous Growth in May and June Up 56,000 More – USA Unemployment Rate at 9.6% (Sept 2010) – Unemployment Rate Drops Slightly to 9.4% (Aug 2009) –
Over 500,000 Jobs Disappeared in November 2008
Given the mess the economy was left in by the too-big-too-fail banks and their supporters (in DC) and those supports supporters (all the rest of us) and the continuing mess in Europe it is fairly amazing we are doing nearly as well as we are.
The massive reliance on huge rewards to the bankers and huge debt for the taxpayers is very worrisome. This is a very bad situation for the long term.
The average workweek for all employees on private nonfarm payrolls was unchanged at 34.5 hours in July. Both the manufacturing workweek, at 40.7 hours, and factory overtime, at 3.2 hours, were unchanged over the month. The average workweek for production and nonsupervisory employees on private nonfarm payrolls was unchanged at 33.7 hours.
Over the last year, average hourly earnings have risen by 1.7%, bringing average hourly earnings of private-sector production and nonsupervisory employees to $19.77.