U.S. unemployment rate jumps to 9.2 percent

[News_Editor]

U.S. unemployment rate jumps to 9.2 percent

2011-07-09 07:26:59 GMT+7 (ICT)

WASHINGTON, D.C. (BNO NEWS) -- The United States' unemployment rate jumped to 9.2 percent, as the country gained a total of 18,000 jobs in June, the U.S. Labor Department (DOL) said Friday.

"Our nation's labor market experienced slower growth in the month of June," said DOL Secretary Hilda L. Solis, as the June 2011 Employment Situation report showed that the U.S.' private sector added 57,000 jobs, although federal, state and local governments cut a combined 39,000 positions.

With June, the U.S. has had 16 straight months of private sector job growth, which has added more than 2.2 million private sector jobs during this span.

"Our economic recovery is being, and needs to be, carried by the private sector," Solis added. "But we need to see businesses do more to employ American workers. Many companies have had a great year and are sitting on large piles of capital. It is critical that they begin to turn their profits into jobs for the American people."

President Barack Obama has advocated for common-sense investments in areas like infrastructure, transportation and manufacturing that would bolster the country's recovery in order to pursue long-term employment solutions, Solis continued.

"We must make investments in our roads, bridges, and most especially, in the education and training of our people," she said. "Congress needs to show leadership and send a signal to the markets that Republicans and Democrats are capable of putting aside their differences to act on behalf of the American worker."

Solis underlined that lawmakers must quickly come together to approve a plan to raise the debt ceiling to avoid a crisis of confidence. In addition, the DOL Secretary said Congress could immediately keep workers on the job by reforming the unemployment insurance system so more states would participate in work-sharing programs.

"These programs allow employers to avoid making layoffs during lean times by instead reducing some workers' hours, while states make up a portion of their lost wages through their unemployment funds," Solis stated, adding that work-sharing was a proven job-saver, but fewer than half of all states utilized it.

According to Solis, these programs saved more than 265,000 jobs in the previous two years alone, while work-sharing has helped businesses retain skilled workers in whom they have invested time and money.

"It keeps workers on the payroll so they can keep their skills fresh and provide for their families; and it saves taxpayers money by reducing the number of people seeking full unemployment compensation," Solis concluded.

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