Hiring Remains Weak
Hiring Remains Weak— Hiring remains weak and employers may be cutting their staffs again. This suggests that companies won’t be adding enough workers in August to lower the 9.5 percent unemployment rate.
The government’s July jobs report showed that the economy lost a net total of 131,000 jobs last month. Excluding the impact of the elimination of 143,000 temporary census jobs, the economy added a meager 12,000 positions, as layoffs by state and local governments almost canceled out weak hiring by businesses.
The report on jobless claims indicates that trend may not change soon. Claims fell steadily last year from their peak of 651,000, reached in March 2009. But they have mostly leveled out this year at or above 450,000. In a healthy economy with rapid hiring, claims usually drop below 400,000.