Job losses in every direction
Most industries experienced job cuts last month, and the rise in energy prices has yet to fully factor into the big economic picture. Amy Scott reports it could be worse -- and probably will become worse.
A job seeker searches for employment information. (Tim Boyle/Getty Images)
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Scott Jagow: There's so much tension and anxiety in the markets right now, you have this scenario this morning: The government said employers cut 62,000 jobs last month. That's the sixth straight month of job losses. And Wall Street cheered. Investors were just glad it wasn't worse. Amy Scott has more on the jobs picture.
Amy Scott: Most industries lost jobs last month. Residential and commercial construction took a big hit. Manufacturers lost more than 30,000 jobs. Temporary positions plunged. Only a few sectors, like health care, hospitality, and the government, showed signs of life.
Economist Nigel Gault with Global Insight says we're still a ways off from the losses you might see in a full-blown recession.
Nigel Gault: But I'm afraid there are still darkening clouds on the horizon, because we haven't yet seen the full impact of all these big increases in energy prices passing through.
The unemployment rate held its ground at 5.5 percent. But Gault says that's because fewer people were actively looking for work last month.
One apparent bright spot: Hourly wages rose by six cents in June. But factor in inflation, and wages are falling.
In New York, I'm Amy Scott for Marketplace.
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