The U.S. Labor Department announced that the private sector added 71,000 jobs for July. Job losses which mostly came from state governments brought the net gains in jobs to 12,000. The unemployment rate stayed @ 9.5%. So far this year state and local governments have shed 169,000 jobs because of budget shortfalls.
The private sector has added jobs for seven straight months. The rate of addition is not fast enough to satisfy those unemployed or to ramp up the economy. Consumer spending will also not be up to par until more people are back at work.
Although the above numbers are weak to grow the economy the situation is not as bad as some people think and who are predicting another recession. The fact of the matter is the economy is not only growing steady but is on tract to add more jobs that reduce the unemployment rate. This is not an economy that is coming out of a normal or mild recession but one that is leaving behind the worst recession and job losses since the great depression. It is going to take longer than usual but the country is on tract. The federal reserve needs to keep its hands off the economy and stop manipulating things beyond their control.
The naysayers will once again be proven wrong. There will be no second recession and the economy will continue to improve and grow. Jobs will continue to be created and the pace of hiring will pick up as the economy continues its upward trend. Those who would still like to see the Obama administration fail will continue their negative talk up through the November elections. It is SOP for them because they have no record of success.
