Job Growth Continues to be Weak in the US

August 20 00:00 2011

New York, August 20 ( – According to the figures released by Labor Department, there was an increase of 9,000 in the number of people applying for unemployment benefits last week. Weak job growth has taken the seasonally adjusted figure to 408,000. This figure stood at 399,000 just two weeks ago but persistent weak job growth has again pushed it above 400,000.

Due to the number of applications for unemployment benefits reaching its highest level in four weeks and the stunted job growth, the shares of staffing company Manpower Inc. went down on Thursday by $2.99 and reached $37.93, a fall of 7 percent.

For the job growth situation to be termed as healthy the number of applications must fall below 375,000 but the four-week average was down at 402,500. The figures released by the Labor Department indicate that job growth is taking place with creation of new jobs but it is not enough for reducing the high unemployment rate of 9.1 percent.

The most important contributing factor for this situation is the global sell-off of stocks on Thursday and the decline of the Dow Jones industrial average by 448 points on Thursday afternoon. In addition to the dismal job growth scenario, the prices of food, gasoline, and clothes registered the biggest increase since spring.