Unemployment rate dips thanks to census jobs, job creation slows

Online, June 9, 2010 (Newswire.com) - Although employment figures jumped in May by more than 400,000 jobs, job creation grew at the slowest pace of the year. The unemployment rate dipped to 9.7 percent as statistics showed that many have given up on finding work.

The Labor Department released a new employment snapshot June 4, which showed that outside the bubble created by the hiring of temporary census workers, many private employers are still wary of adding to their payrolls. The bulk of the jobs created in May were from the hiring of census workers, and experts expect the numbers to drop in June.

Private employers added just 41,000 jobs in May, down from 218,000 in April. The numbers in May were the lowest posted since January. Large corporations have continued to downsize.

President Barack Obama, in a speech June 4, acknowledged that temporary census jobs drove the overall payroll gain. But he maintains that private sector hiring is growing, noting five straight months of job gains after devastating losses from the recession. Obama said the recovery is still in its early stages, and things won't even out for several more months.

"Things never go completely in a smooth line," the president said. "This report is a sign that our economy is getting stronger by the day."

The unemployment rate fell from 9.9 percent. The dip reflected, according to the Labor Department, 322,000 people leaving the labor force for a variety of reasons. The department's figures stated that a total of 15 million people were unemployed in May.

The department is looking at the under-employment rate also. That rate fell to 16.6 percent in May from the reported 17.1 percent in April. Those who are considered under-employed include those who are part-time who'd rather be working full-time.

With large companies cutting back on staff, many who are seeking employment are looking for work in the small business sector. Obama has been quoted in recent months as saying small business owners are "the true engine of job growth in this country."

With that in mind, small business owners may want to look at the bottom line of hiring new workers in anticipation of strong economic recovery.

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