The Bureau of Labor Statistics announced today that the unemployment rate rose to 9.2 percent after the economy added just 18,000 jobs last month. The underemployment rate climbed to 16.2 percent, while 44 percent of the unemployed have been out of work for six months or more.
CAP Senior Economist Heather Boushey released the following statement:
New data show that the labor market is floundering. Private-sector employers added only 57,000 new jobs in June while layoffs in government brought the total new jobs to a mere 18,000. This is grim news for workers and should be seen as a serious wake-up call to policymakers. We cannot get our fiscal house in order until we get America back to work. The economy will not be able to withstand the shock of running into the debt ceiling, but it will be a tragedy if the negotiations lead to reductions in public spending while the job market is so weak.