Friday, June 29, 2012
Associated Press
WASHINGTON
The U.S. economy is growing too slowly to pull the job market out of a slump, according to the latest data that suggest June will be another weak month for hiring.
Applications for unemployment benefits last week stayed above a level that is generally considered too high to lower the unemployment rate. And the annual growth rate for the January-March quarter was unchanged at a tepid 1.9 percent.
The two government reports released Thursday added to the picture of an economy that is faltering for the third-straight year after a promising start. Job growth has tumbled, consumers are less confident and Europe’s financial crisis has dampened demand for U.S. exports.
Most economists don’t see growth accelerating much from the first-quarter pace, although some are hopeful that lower gas prices could help lift consumer spending.
Growth of about 1.9 percent typically generates roughly 90,000 jobs a month. That’s considered too weak to lower the unemployment rate, which was 8.2 percent last month.
Slow improvement in the economy threatens President Barack Obama’s re-election hopes. He is likely to face voters with the highest unemployment rate of any president since the Great Depression.