The Labor Department released its employment report for June and the results were very disappointing. The unemployment rate only rose 0.1% which was less-than-expected, but it’s still the highest reading in 25 years.
The real shocker, however, was nonfarm payrolls. Employers slashed 467,000 jobs last month. Ouch! Wall Street was expecting a decline of 322,000, so this is a big disappointment.
Even the government sector cut 52,000 jobs last month. I’m curious is this is mostly coming from the state level. It might get worse since 46 states have June 30 budget deadlines and at least 6 states are deadlocked. This still looks like a stagnate economy to me.