Weak jobs figures in U.S. prompt fears of second recession
For the first time this year, the U.S. saw its employment pool shrink by 125,000 jobs in June, prompting some to worry about the overall state of the economy. The Labor Department attributed much of the decline in jobs to the loss of 225,000 Census jobs that were added in May, but there are still fears the country could fall back into a recession. “It is a Catch-22 situation,” said Sung Won Sohn, economics professor at Cal State University-Channel Islands. “Businesses are reluctant to hire for fear of a double-dip recession. But without jobs, the economy can’t grow.” Though the unemployment rate fell to 9.5 per cent from 9.7 per cent in May, much of that was due to discouraged job seekers abandoning the job hunt altogether.