Employment Report Worse Than Expected

The Labor Department today reported that private sector employment was lower than economists had forecasted, and while the unemployment rate declined to 9.5 percent, it did so only because more people stopped looking for work and thus were no longer included in the calculation.

All told, the economy shed 125,000 jobs in June, though those losses include 225,000 lost temporary Census jobs. The private sector did gain 83,000 jobs, but those gains were lower than expected.

The civilian participation rate dropped .3 percent to 64.7 percent and 652,000 people gave up looking for work. Those people are not included in the unemployment rate.

The bottom line is that this is the second consecutive weak employment report at a time when the economy was supposed to be rebounding. This will bolster the case of those who believe we’ll either have a really slow economic recovery, or even a double dip recession.

Politically, it’s more bad news for Democrats. And keep in mind that there are only three more unemployment reports between now and the mid-term elections, so time is running out for them to show results.

Gallup: Indpendents Favor Republicans By 12%

Gallup has released a new poll showing that Republicans continue to make gains among independent voters. According to the latest generic ballot independent voters now indicate a preference for the Republican candidates in their districts by a 46 percent to 34 percent margin, compared to a slightly narrower 44 percent to 36 percent margin in March.