U.S. Secretary of Labor Hilda L. Solis released a statement on the July 2010 Employment figures discussing what they meant and where to go from here. To summarize her statement in one sentence: The unemployment situation has not gotten worse, but we must continue making improvements and creating jobs for Americans.
Solis’ 500-plus-word statement was full of facts and figures, but aside from its eloquence, it didn’t seem to offer much promise to worried Americans.
What the New Figures Show
The report stated that the monthly unemployment rate has not changed — remaining at 9.5% — while the economy has had a net job gain of 71,000 in the private sector. Overall, employment declined by 131,000. Throughout the entire year, 630,000 private sector jobs have been created at a steady rate of about 90,000 new private sector jobs per month. These figures align with the predictions made earlier this year by the Council of Economic Advisers.
“While this private sector job growth is encouraging, the large number of Americans without a job reminds us we need to continue working to create jobs and grow the economy,” Solis said. “When President Obama came into office, he inherited an economy that was losing as many as 750,000 jobs each month. To help put people back to work, we passed a Recovery Act for Main Street, which already has saved or created more than 2.5 million American jobs.”
Though the Secretary of Labor might be encouraged by the growth of the public sector, many people do not see it that way. The fact that unemployment has not improved and the economy seems to sit at a standstill has worried some and angered others. The economy is growing and moving forward, but at such a slow rate that many Americans are disappointed.
Effect on the Economy
The new data clearly had an impact on investors as stocks took a slight hit on Thursday. They continued to drop on Friday as more definite employment figures emerged. The stock market’s poor performance is an indicator that investors are worried about the lack of hiring. The figures show that employers are hesitant to create jobs, resulting in additional stagnation of economic growth.
Solis’ understands the importance of creating jobs: “The president and I are pushing Congress to pass legislation that will prevent local budget cuts and save thousands of teacher, police and firefighter jobs across the country. We know that economic prosperity and educational success go hand in hand. We must work to ensure that teachers across the country can stay in the classroom and that cops, firefighters and teachers stay on the job.”
This is not the first time job creation rates haven’t matched up with unemployment figures. In May, the U.S. added 290,000 jobs but the unemployment rate still rose. Figures do not always include all the facts. Some of the new jobs are temporary, other times the rate of job loss climbs faster than job creation. One thing is clear: America needs more jobs.
To read more of US Secretary of Labor Hilda L. Solis’ statement click here.