The Friday jobs report is out and it is, well, not so good – especially for President Obama.
The U.S. economy created just 80,000 jobs in June and the unemployment rate held steady at 8.2 percent, reflecting continued slow growth in the economy with the presidential election just four months away.
The Bureau of Labor Statistics said private payrolls increased 84,000, while the government lost 4,000 jobs. Economists expected job growth of about 100,000 and the unemployment rate to be unchanged, though many had increased their forecasts based on some recent indicators.
With yet another month of weak employment growth, the second quarter marks the worst three-month period in two years. The period averaged just 75,000 per month, against 226,000 in the first quarter, which benefited from an unusually mild winter.
May’s weak initial 69,000 report was revised upward to 77,000, which made the June growth essentially the same. The April number was revised lower, from 77,000 to 68,000.
“What a disappointing number,” said Jeff Savage, regional chief investment officer for Wells Fargo Private Bank. “This was kind of disastrous. We’re not even keeping up with demographics at this point. This is not going to be liked in the markets.”
The stock market, where futures had been essentially flat before the jobs number was released at 8:30 am ET, fell sharply, though that disappointment could be tempered by hopes of more stimulus from Washington.
With Mitt Romney falling in the polls lately, this should re-ignite his campaign and refocus his narrative on jobs and the economy.
President Obama may have won a victory when the Supreme Court ruled ObamaCare constitutional, but the economy is still not growing and the unemployment rate is high.