Comment on U.S. Bureau of Labor Statistics Employment Situation Report: Kathy Bostjancic, Director for Macroeconomic Analysis, The Conference Board

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Jul 08, 2011, 09:20 ET

NEW YORK, July 8, 2011 /PRNewswire/ --

Moribund Job Market

Dismal job growth in May and June substantially lags the broader economy. Real GDP fell below 2 percent in the first half of the year, and unfortunately, growth is not likely to improve much in the second half of the year. The weak labor and housing markets are the biggest impediments in generating momentum this summer. Construction and now manufacturing are not generating a lot of new jobs. The real story, however, is the lack of stronger job growth in "core" services (which excludes health and education). Minimal gains in employment are limiting income growth, which weighs heavily on consumers' confidence. Employers, worried about maintaining margins in the face of sluggish domestic demand, are turning cautious about adding to payrolls. This degree of shared caution could remain in evidence right through Labor Day.

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