Just when you were hoping to enjoy the sunny weekend, the New York Times of Gloom brings us the following depressing economy news. Happy Endless Recession Day!
- Due to poor numbers from the labor department’s monthly report, the Dow Jones industrial average plunged 323.31 points, or 3.2 percent on Friday. The Standard & Poor’s 500-stock index tumbled 3.4 percent, and the Nasdaq composite slid 3.6 percent.
- The figures for May represented the fifth consecutive month that payrolls have risen, but fell below analysts’ expectations that 540,000 jobs would be added to the economy.
- The underlying numbers showed that almost all of the growth came from the 411,000 workers hired by the federal government to help with the Census. Most of those jobs will end in a few months.
- And the number of long-term unemployed, those Americans out of work for 27 or more weeks, remained at its highest level since the Labor Department began collecting such data in the 1940s.
- The economy must add more than 100,000 jobs a month just to absorb new workers entering the market. Those entrants — including a large batch of high school and college graduates — will join a labor pool swollen with 15 million Americans looking for work.
- As well, the report showed that hard-pressed city and state governments had begun to cut budgets and shed employees, a process that could accelerate sharply in coming months.
- Robert Reich, who served as labor secretary for President Bill Clinton, placed the chance of the United States slipping back into recession at 50 percent.
- The number of long-term unemployed remained at about 6.7 million, accounting for 46 percent of the jobless rolls. And the number of “discouraged workers,” which is to say people not looking for work because they see no prospect of employment, rose by 291,000 from a year earlier.