Weak Job Creation Due To Decreased Demand, Uncertainty

“Today’s employment situation report as another lackluster month of job creation, with employers adding just 115,000 jobs. The unemployment rate did fall again last month, dropping another tenth of a point to 8.1 percent, but the decline was due primarily to a shrinking civilian labor force rather than employment gains. It is looking more and more like we will see a repeat of last year’s spring and summer lull in job creation. Job creation, while in positive territory for 26 consecutive months, has definitely ebbed and flowed. Even at its best, job creation is falling well short of what is needed to make a substantial dent in unemployment. While some would like to attribute the lack of hiring to uncertainty and regulatory roadblocks, the fact is that demand for goods and services simply has not reached a level that warrants accelerated hiring. In areas, where demand has improved, so has hiring. Just look at the auto industry. Chrysler just announced that it will forego it’s usual summer shutdown and keep all its plants humming in order to meet consumer demand. Until more companies are experiencing the same type of demand, we are not going to see an explosion in hiring.”

– John A. Challenger, CEO
Challenger, Gray & Christmas, Inc.

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