United States employment prospects look dull in the midst of Euro zone Debt Crisis

The latest U.S. Job report does reflect a gloomy employment situation in the United States with the creation of just 69,000 jobs. This figure is far less than the expected 165,000 jobs that economists hoped to get created this season amidst the Euro Zone Debt crisis. The news of dismal job report left the U.S Stocks bleeding and felling more than 2 percent on Friday thereby dragging the Dow Jones into a negative territory.

The job growth rate in the United States is the slowest and weakest during the past 12 month period. In addition to the alarming job outlook in the United States, investors are having fears about the Euro Zone debt crisis that resulted in the unemployment growth rate to peak at 11% in Europe. Leading economists opine that in case the Euro zone fractures then it will lead to the economy of United States facing a critical situation.

The jobless or unemployment rate at this point of time in United States is around 8.2 percent with the month of April being too worse for hiring. The payrolls figures have been revised down from 115,000 to 77,000 jobs only being added. The pay roll figures for the month of March were also revised down. Thus, for the straight three months period the job rate turned weak when compared with the job growth rate earlier this year, when the U.S economy was adding jobs of over 200,000 per month.

The jobs position in construction sector remained weak with a cutting of 28,000 jobs reflecting the existing problems being faced in the housing market. The business and service industry that usually considered being a stronger sector shed about 1000 jobs for the first time in the recent history since early 2010. The government also played its part on the already depleting job growth rate by shedding workers, thereby losing 13,000 jobs.

Uncertainty over the job growth prospects will remain a burning issue for the coming months because of the Debt Crisis in Europe as well as economic and political issues in the U.S. like tax code, health care and regulatory reforms. It is estimated that currently 58.6 percent of people over the age of 16 are employed and this rate is just over 0.1 percent points since October- 2009. Some positive news is that the U.S. economy is still better than the Europe’s with healing up of housing market and lending picking up in the United States.

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