Drop in job index worries U.S. Economy
As per the Labor Department, the jobless rate in United States of America was 9.7 percent for the month of June which is still quiet close to that of 10.1 percent for the month of October last year. Though companies in United States are coming up with jobs but it is clear that the numbers aren’t satisfactory. It is not the constant tit bits of job opportunities that will help the U.S. economy but the continuous in-flow of numerable job opportunities that will boost confidence in the market.
A major reason behind the still staggering U.S. economy is the worst oil spill in the history of U.S. around its Gulf Coast states like Florida, Alabama, Mississippi and Louisiana. The well blowout of April 20 destroyed the deep-water drilling rig and killing 11 of its crew members thus creating havoc around the area thus resulting into plenty of job less workers.
The endless job block has forced families to cut down their budgets thus bringing down the profits of companies like Best Buy which has been tagged as the largest consumer-electronics retailer of this planet.
“Increasing uncertainty and apprehension about the future state of the economy and labor market, no doubt a result of the recent slowdown in job growth, are the primary reasons for the sharp reversal in confidence,” Lynn Franco, director of the Conference Board Consumer Research Center, said in a statement. “Until the pace of job growth picks up, consumer confidence is not likely to pick up.”
