A Ball State University economist is calling the economic recovery “sluggish” and “disappointing” following today's release of the July employment report. Nationally, 209,000 jobs were added, which moved the unemployment rate up to 6.2 percent, from 6.1 percent in June. Michael Hicks says those jobs are not enough to “seriously absorb new workers.” August 1, 2014
MUNCIE, Ind. – Ball State economist Michael Hicks says today's national jobs report continues to signal the economy faces a sluggish, disappointing recovery.
The U.S. Department of Labor reported today the U.S. economy added 209,000 jobs in July, a drop from 298,000 jobs added in June. The unemployment rate rose to 6.2 percent last month, up from 6.1 percent in June as more people began to look for work.
“The 209,000 jobs are not enough to seriously absorb new workers, which is why the unemployment rate edged up slightly,” says Hicks, director of the Ball State Center for Business and Economic Research (CBER). “This slowing of job growth also suggests that the 4 percent growth rate from this week’s preliminary GDP report will be significantly adjusted downwards in later revisions.
“The bottom line is that the economy is improving enough that the Fed will end stimulus in the coming months, but growth is too slow to see a meaningful recovery.”
Source: Ball State University