The unemployment rate fell to 9.5 percent in June not because people went back to work, but because more than a half-million people gave up looking for work and were no longer counted as unemployed. The private sector added just 83,000 jobs for the month which is much fewer than the 200,000 new jobs needed each month to bring down the unemployment rate.
The fate of the economy will hinge on whether it can stand on its own. President Obama acknowledged the slow pace of the recovery and used the new job figures to argue for more stimulus spending and extended unemployment benefits. The loss reflected the end of 225,000 temporary jobs with the U.S. Census Bureau. Congress left on recess having failed to pass legislation that would have extended unemployment benefits for hundreds of thousands of Americans.