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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