6 July 2001, 16:36 US Jobs Report-OVERVIEW
--US June payroll jobs -114,000; jobless rate +0.1 pt to 4.5%
--US June factory jobs -113,000; construction -7,000
--US June avg hourly earnings +0.3%; May 0.3%
--US June private payrolls -138,000; govt +24,000
--US Jun avg hourly earnings +4.2% from yr ago; May revised to +4.2%
--US June available labor pool up to 11.0 mln; May 10.7 mln
--US June workweek unchanged; manufacturing workweek -0.1 hr
--US May payroll jobs revised to +8,000 from -19,000
--US April payroll jobs revised to -165,000 from -182,000
--US June retail jobs +18,000; wholesale trade jobs -15,000
--US June temporary jobs -26,000
By Andrew Williams and Shihoko Goto
Washington, July 6 (BridgeNews) - Deep cutbacks in manufacturing
caused U.S. payroll jobs in June to decline sharply for the second time in
three months. Payroll jobs fell 114,000, while the unemployment rate rose
0.1 percentage point to 4.5%, the highest since October 1998, the Labor
Department reported Friday.
Analysts surveyed by BridgeNews had projected a 50,000 decrease in
jobs, a 0.3% rise in average earnings and an unemployment rate of 4.6%.
In the wake of a slowdown in the economy, the labor market has been
weak since April with payrolls dropping a revised 165,000 that month and
increasing only a revised 8,000 in May.
In May, manufacturers shed jobs for the 11th straight month, cutting
payrolls by 113,000 as they continued to battle a recession in their
industry.
Construction companies 7,000 jobs while mining employment rose only 1,000.
The weak job market wasn't exclusively on the factory floor.
Service-producers' payrolls rose only 5,000. Retail jobs rose 18,000 but
wholesale trade jobs fell 15,000.
"Eventually, the impact of layoffs is bound to spread," beyond the
manufacturing sector, Howard Hayghe, supervisory economist at the Bureau
of Labor Statistics. He pointed out that no industry exists in isolation,
and so far the dampened consumer sentiment is weighing on entertainment
and recreation industries, he said. Such sectors are cutting back on
hiring temporary workers, he said.
The temporary workforce also was cutback by 26,000, which will
interest those experts who believe this measure serves as a leading
indicator for employment conditions. Such workers tend to get laid off
first as companies downsize amid slower business.
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