| Economists
were shocked at the sudden jump from 6.1% to 6.4% in one month, which they
had predicted lower. The sudden rise came from the loss of 30,000 non-farm
payrolls and 70,000 jobs in May alone. In a separate report, the number
of Americans filing new claims for unemployment benefits rose to 430,000,
which also was higher than economists expected. This precipitated a lower
stock market opening for the shortened trading day before the 4th. The Bush
Administration responded with vague promises of recovery. Presidential spokesman,
Ari Fleischer, told reporters the President is concerned with the rise in
unemployment, but that he thought recently enacted tax cuts would help in
the future. Fleischer said the numbers show a sign of slow recovery from
a short shallow recession. Labor Secretary Elaine Chao said that while the
increase in unemployment was a disappointment, there were signs of strength
and future growth in the report. “ I think it’s important to
take a look behind the numbers. As the economy gains steam and people gain
confidence about their job prospects they will declare themselves back in
the job market and the unemployment rate may increase. That’s I think
what we’re seeing today.” |
