U.S. UnemploymentHighest in Four Years

In July, as compared with June, the American economy lost nearly 51,000 jobs. It’s a little less than was forecast. But the unemployment rate grew more than expected, growing from 5.5% to 5.7%.

Even if the American economy isn’t in recession, as claimed by the Cassandras (its growth was 1.9% in the second trimester, even if it was less than was expected), it remains all the same in a precarious situation.

July’s employment figures, greatly anticipated and released this Friday afternoon, reported a loss of employment for the seventh consecutive month, by an amount equivalent to that in June (initially it was 62,000, revised to 51,000).

It’s clearly less than the 75,000 predicted by economists. However, the unemployment rate jumped more than expected, rising from 5.5% to 5.7% instead of the awaited 5.6%. And so unemployment returns to its highest level since March 2004.

The figure in May was also revised and the losses were lowered from 62,000 to 47,000; since the beginning of the year the economy has lost in total 463,000 jobs.

In July, the housing crisis caused a loss of 22,000 jobs in the construction sector. The industry continued to lose 35,000 jobs. 17,000 jobs were lost in distribution, and 24,000 were lost in service companies. However, 39,000 new jobs were created in health and education, and 25,000 in the public sector.

Similarly, in the United States in July, the average hourly salary increased by 0.3% to $18.06 as predicted by economists. This amounts to a rise over one year of 3.4%. It remains more stable than the month before.

In addition, the Institute for Supply Management’s Purchasing Manager’s Index moved down in the month of July, from 50.2 to 50 – exactly the point which marks the difference between growth and contraction of the economy. Analysts fear that it will tip into the red and fall to 49.2%.

But spending on construction in June was lower than thought, with a fall of 0.4%, instead of the 0.3% expected by economists.

All of these figures will be closely examined by the members of the American Central Bank, called the Fed (Federal Reserve), which is presided over by Ben Bernanke, who must decide by next Tuesday if it will maintain the current interest rate of 2%.