Unemployment Rate Falls to 9.5 Percent as the Labor Force Shrinks
Friday, July 02, 2010 at 9:15 am
The good news? The unemployment rate fell to 9.5 percent — the lowest rate in a year. The bad news? It only fell that much because so many people left the labor force, possibly out of discouragement.
In June, employers cut a total of 125,000 jobs, the most since October. But the number is a bit difficult to parse, since 225,000 temporary census worker positions ended. Private businesses added 83,000 jobs, more than in May but fewer than in March and April. All in all, 652,000 people left the labor force.
A total of 14.6 million Americans were looking for work in June. The economy has eight million fewer jobs than when the recession started. It takes 100,000 new jobs a month to keep up with long-term growth in the labor force, and around 200,000 jobs a month to cut into the unemployment rate.
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