6 Stocks Avoiding the Unemployment BACKLASH
July 8, 2012 3 Comments
The “recovery” story continues to get pumped full of holes. On Friday, the Labor Department reported another month of weakjob growth. In June, the U.S. economy added just 80,000 jobs, well below estimates of 100,000 and slightly better than May’s revised higher 77,000 figure. After the report, equities across the board sold-off.
The latest unemployment report capped the worst three-month period for employment growth in two years. For the second-quarter, the U.S. economy gained 225,000 jobs, averaging only 75,000 per month. In comparison, the first-quarter averaged 226,000 jobs each month.
Although the headline unemployment rate was unchanged at 8.2 percent, the U-6 rate, also known as the underemployment rate, edged 0.1 percent higher to 14.9 percent. The U-6 rate includes everyone in the headline rate, plus people who are either employed part-time but prefer a full-time position, or want work but have stopped looking. “The economic recovery is clearly stuck in quicksand as job creation remains anemic and layoff announcements soar,” said Todd Schoenberger, managing principal at The BlackBay group, according to CNBC. “It’s going to be an extremely difficult second half of 2012 for Americans, as employment worries rise and the household balance sheet continues to deteriorate.”Read More