July Unemployment Rate Steady at 5.9%

Payrolls Up by 6,000; Factories Shed Another 7,000 Jobs

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The U.S. economy added just 6,000 jobs in July and the national unemployment rate held fast at 5.9%, just under the eight-year high of 6% recorded in April, the Labor Department said in a report Friday.

A high unemployment rate is a sign that the economic recovery, which would increase the demand for trucking services, remains shaky.

Bloomberg said the 6,000 increase in U.S. payrolls reported by the Labor Department for July is far below economists’ expectations. A survey of economic observers, Bloomberg said, produced a consensus estimate of 60,000 workers being added to U.S. payrolls.

Payrolls need to add about 150,000 jobs a month for the unemployment rate to begin falling appreciably, Bloomberg said.

Analysts told Bloomberg that the economic recovery “hit an air pocket” in July, losing its momentum. Until orders and production numbers can recover, the monthly unemployment figures will remain shaky.

For the 24th straight month, the manufacturing sector bled jobs, cutting 7,000 in July to follow up 13,000 firings in June, Labor said. Overall, manufacturing grew at its slowest pace in July since beginning to rebound in January, the Institute of Supply Management said Thursday.

The average number of hours worked each week fell to 34 in during the month from 34.3 hours the month before. The figure was the lowest it has been since October 2001.

The percentage of the total U.S. population holding down a job fell to 62.6% in July from 62.7% the previous month, the report said.

Average weekly earnings for American workers fell to $502.86 from $505.93 during June, Bloomberg said. The average hourly earnings figure rose 0.3% or 4 cents, however.

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