Lewis Diuguid

June 7, 2013

Unemployment remains stubbornly high

It’s unlikely that new unemployment data will change the Federal Reserve policy of keeping interest rates low or reduce its other economic stimulus. There are still the problems overseas of a deepening recession in Europe and a slowdown of the economy in Asia.

Unemployment edged up in May, hitting 7.6 percent compared with 7.5 percent in April. However, the economy added more jobs than expected.

The Labor Department reported Friday that 175,000 jobs were added. But the unemployment rate ticked up slightly because more people flooded the market, seeking jobs. Think of all those young college and high school graduates looking for ways to put their skills to use.

The mixed Labor Department results overall are a positive indication that the economy is improving. At least it’s not stalled or retreating.

It’s unlikely, however, that the numbers will change the Federal Reserve policy of keeping interest rates low or reduce its other economic stimulus. There are still the problems overseas of a deepening recession in Europe and a slowdown of the economy in Asia.

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