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Economy Growing Too Slowly to Lift U.S. Jobs Market; Another Weak Month of Hiring Expected

Associated Press (06/28/12)

The latest economic data suggest June has been another weak month for hiring. Applications for unemployment benefits last week stayed above a level that is generally considered too high to lower the unemployment rate. The annual growth rate for the U.S. economy in the January-March quarter was a tepid 1.9%, a rate of growth that typically generates about 90,000 jobs a month. Most economists do not see growth accelerating much from the first-quarter pace, although some are hopeful that lower gas prices could help lift consumer spending over the summer.

Economists are predicting that 100,000 jobs were added in June and the unemployment rate did not change, according to a survey by FactSet. “Jobless claims are still too high and show that employment growth is slowing and no progress is being made,” says Jennifer Lee, an economist at BMO Capital Markets.