Pethokoukis

The chart that shows the private sector is not ‘doing fine’

You can say what you want about cuts in government hiring, but the private sector is not “doing fine” as President Obama has suggested. Private-sector job growth continues to be sluggish at best, having downshifted significantly from earlier this year. Here is JPMorgan:

Private hiring remained subdued last month, increasing only 84,000. Government employment contracted only 4,000 last month, thanks in part to a jump in local, non-educational government employment. Job growth in goods-producing industries rebounded from -21,000 in May to 13,000 in June, mostly due to a rebound in construction employment. Manufacturing employment rose a trend-like 11,000 last month, though given recent worrying signals from the factory sector there are reasons to be concerned that this industry may cease to be a net job creator in coming months. Private, service-providing industries added an anemic 71,000 jobs last month. The tepid pace of job growth was fairly widespread across service industries.

 

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