More on Slow Jobs Recovery

Jobs growth for June was far less than economists predicted (which was already much less than needed for a proper recovery).  One reason that Occupy carries so much more urgency than movements of past years is that this time everything will not be alright:

Unemployment has climbed for three straight months and is now at 9.2 percent. There’s no precedent, in data going back to 1948, for such a high rate two years into what economists say is a recovery.

The economy added just 18,000 jobs in June…

The excruciatingly slow growth is confounding economists, spooking consumers and dismaying job seekers. Friday’s report forced analysts to re-examine their assumption that the economy would strengthen in the second half of 2011.

Employers have good reason to wait, says economist Ken Mayland at ClearView Economics. A political standoff over the federal debt limit threatens to send the U.S. government into default next month. That would send interest rates soaring and might tip the economy back into recession.

Even if President Barack Obama and congressional Republicans agree to raise the borrowing limit, the deal will likely require deep cuts in government spending and possibly tax increases. Combined, those steps could slow the economy further.

Heightening the uncertainty are Europe’s debt crisis and the possibility that China’s efforts to tame inflation will slow its booming economy. Both factors could destabilize financial markets and reduce U.S. exports, one of the economy’s few strengths.

“We have painted ourselves into a corner,” Mayland says. “When you’re at zero interest rates and running a $1.5 trillion deficit, you don’t really have many policy options.”

via Yahoo! News.

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