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Friday, August 6, 2010

Greater than expected job loss in July. Economy shed 131,000 jobs last month and the unemployment rate held steady at 9.5%

Senators return to their districts for the August recess today, facing renewed questions about the economic recovery after the government announced greater than expected job loss in July.

The Labor Department reported this morning that the economy shed 131,000 jobs last month and that the unemployment rate held steady at 9.5 percent. On the upside, private employers added 71,000 jobs, while many of the losses coming from 143,000 federal Census Bureau workers leaving their temporary posts.

Still, taking into account revisions to the seven monthly reports so far this year, the nation’s economy added an average of less than 100,000 jobs a month in 2010, a level that’s not strong enough to bring unemployment down, The Wall Street Journal explains.

President Obama will address the numbers during a visit to Gelberg Signs, a small business in Washington. Mr. Obama will highlight the company’s ability to hire new workers and invest in new technologies thanks to two loans from the Small Business Administration as Democrats work to build support for their small business lending bill. The majority leader, Senator Harry Reid of Nevada, said Thursday that he was confident Democrats would have enough votes to pass the measure in the fall.

Romer’s Out: The jobs report comes on the heels of news that Christina D. Romer will resign as chairwoman of the White House Council of Economic Advisers, effective Sept. 3. Ms. Romer, the only woman in the inner circle of Mr. Obama’s economic advisers, will be the second member of the team to step down this summer. (Peter R. Orszag left last week as budget director.) (Source)

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