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Unemployment Rate Rises to 8.3%

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  • Description

    FBN’s Ray Hennessey breaks down the latest numbers from the Labor Department.

  • Duration 5:05
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Hi everyone US payrolls added 163000.

Jobs last month the big -- over the 100000 that economists were looking for.

Fox Business is rich -- is live at the Labor Department now with more on that report and rich there's some conflicting numbers in this one.

That's right the Labor Department Diane speaks to businesses and finds very good news a 163000.

Jobs that it -- actually just enough really.

To keep up with population growth -- better than expected.

When you look at the Department of Labor talking to households a different group of people.

You get bad news an increase in the unemployment rate eight point 3% from eight point 2% to find out that the labor force.

Decreases by a 155000.

A number of unemployed people increases by 45000.

So.

More better than expected news on one front on the total number of jobs added reported.

By employers at a 163000.

But that is when you call folks.

At their homes the private sector increasing a 172000.

Positioned government dropping 9000.

There were some revisions here.

May was a better than first reported month by 101000 June was worse by 161000 -- take those two months.

It's a loss of 6000 jobs in the revisions over those two months -- six.

The unemployment rate when you count folks who have just dropped out of the workforce essentially is that under the -- find a job.

Be talking an increase to 15%.

From fourteen point 9%.

In June.

Private service jobs a 148000.

Professional business services increasing by nearly 50000.

Temporary help services an increase of 141000.

Manufacturing up 25000 construction down 1000.

Utilities down 8000 because of labor problems.

Leisure and hospitality increasing 27000.

An education and health services.

Increasing by 38000.

Real quick average hourly earnings for all employees increasing by two cents.

To 23 dollars and 52 cents an hour an average hourly earnings for all employees held steady at 34 and a half hours -- All right that's rich -- -- live at the Labor Department rich don't go too far is that like -- back in just a few minutes.

The right now I want to bring in the director of business news here at Fox Business ray -- for more on this report.

I -- you heard these numbers we have.

-- the -- numbered self beating expectations and beating last month by a mile but the unemployment rate ticked up so do we look at this as a good reporter about report.

Well I mean usually you want to see the unemployment rate rise as -- adding jobs because more people are are entering the workforce so.

It's as one odd axiomatic thing about about these labor numbers as you wanna see that tick up in the unemployment rate because that's actually signed the more people are coming in -- -- think they can they can get a job.

And -- you -- temporary rise before sorts of fall that however did not happen here and so that makes that unemployment rate number.

A really really bad number that that rise kinda troubling.

Because you still at a 155000.

People leave the workforce and if you listen to what -- you said about about that you six number they realized circled real unemployment rate.

-- that's 15% that means that eighty only 85% of this country is actually working.

Who who can working a look at labor force participation rate.

That's even going down to 63 point 7% meaning more people who should be working aren't so you continue to have a very.

Discouraged labor force despite what you might see from the -- headline payroll number and and there you know if you're just looking at the payrolls added.

That's it's a lot of good news -- that -- should have been higher except for those labor issues that rich pointed out in in some of the utility workers who have gone on strike and and therefore.

You know what you saw a reduction in that area you typically see a rise in that area so -- it wasn't on that basis that -- -- report but everything else.

When you look at the revisions when you look at the number of people leaving everything else was a really really nasty reports I don't think this does anything to change.

The the overall mean here about the job market which is.

You know we're not creating jobs at a faster pace to keep up with with population.

And secondly you still have a very very discouraged American workforce that's choosing to stay home instead of you know going out and and chasing down -- help wanted it.

And -- -- sent markets tend to be up on this news do you think this is -- knee jerk reaction from investors are they may be hoping that.

This mostly negative report -- trigger some stimulus from.

The Central Bank well I I think being you know a if it depends on I I think people were we're talking about this report.

On the downside they've been surprised to the downside for so many months.

That they look at what the economists were saying and they -- it took some numbers off bad thing for their own whisper numbers -- that came in so far ahead we're estimates work.

Meant that that was generally good news for the labour market having yeah having said that.

This is not a report if if you're making an investment today based on what you think the Fed is gonna do because the labor market.

This is not a report -- you can make any of you know any judgment one way or the other on at this if there's nothing to move the needle.

You know Ben Bernanke -- sitting there looking at this report.

This doesn't make him change his mind and in in in you know what he's deciding to do in any way should perform this is just more of the same -- that's ray Hennessey the director of business -- here at Fox Business thanks --

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