Last month, payrolls in the United States fell by 125,000 as the U.S. government shed 225,000 temporary 2010 census workers, according to a report by the Bureau of Labor Statistics. The loss was tempered by a gain of only 83,000 private-sector jobs added last month, far fewer than many economists had expected.
The report also showed that average hourly pay and average workweek both declined in June.
"This jobs report is a disappointment for every family and every small business,” said Rep. John Boehner (R-Ohio) in a statement last week.
The continued loss of U.S. jobs is alarming as consumer spending makes up approximately 70 percent of the U.S. economy. Fewer jobs grant consumer less income, and less income translates to fewer goods and services purchased, and slower economic growth.
One example is consumer electronic store chain Best Buy Inc., which is seen as a bellwether for consumer spending patterns. Last month, the company announced that 2010 first-quarter sales came in below expectations.
“Consumer spending has been episodic and it appears that our customers are operating on cues from the broader environment,” said Brian Dunn, Best Buy’s CEO, in a conference call with analysts on June 15. “But while spending has clearly rallied from low levels of 2009, our data paints a picture of the consumer coming out to spend and spend well during important events, but taking pauses in between.”
Speaking at Andrews Air Force Base last Friday, President Barack Obama said that the country’s employment situation was headed in the right direction, but not improving fast enough.
The president announced 5,000 new but temporary construction jobs, according to an AP report.
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