The anemic hiring trend continues, although at a slightly quicker pace than the previous month. Government payrolls continued their slide last month, shedding around 4,000 employees. It seems the slowdown undoubtedly has been exacerbated by the threat of further financial turmoil in Europe and the lack of consumer activity in general. Let's hope this trend is short lived and not simply another step towards an economic contraction.Payrolls rose 80,000 last month after a 77,000 increase in May, Labor Department figures showed today in Washington. Economists projected a 100,000 gain, according to the median estimate in a Bloomberg News survey. The unemployment rate held at 8.2 percent. Private employment, which excludes government agencies, increased 84,000 in June, the weakest in 10 months.
Stocks fell on concern hiring has shifted into a lower gear, restricting consumer spending and leaving the economy more vulnerable to a global slowdown. The figures underscore concern among some Fed policy makers that growth isn’t fast enough to lower unemployment stuck above 8 percent since February 2009.
The Standard & Poor’s 500 Index fell 0.9 percent to 1,356.01 at 9:39 a.m. in New York. The yield on the benchmark 10-year Treasury note dropped to 1.56 percent from 1.60 percent late yesterday.
The detailed report can be found here: http://www.bls.gov/news.release/empsit.nr0.htm