The U.S. unemployment rate rose 0.1% to 4.5% in June as the economy lost 114,000 jobs during the month, the Labor Department said today. Transportation played a part in the states with the biggest increase and biggest drop in jobless claims for the week ending June 23, though the department did not say whether those jobs were in the manufacturing or carrier sector.
Analyst Satish Jindel of SJ Consulting Group told Fleet Owner that the rise in unemployment will most likely not affect carriers on the business end.
“Transportation companies are all reflecting the downsizing of companies,” said Jindel. “But unless there is a significant change in unemployment, nothing will be different for the carriers.”
New Jersey, with 5,791 claims, also cited layoffs in the communications, public utilities and manufacturing sectors as well. Missouri had 2,819 less claims due to fewer layoffs in the communications and public utilities as well.
For the 11th straight month, manufacturing payrolls fell, this time by 113,000. Factories have lost a total of 785,000 jobs over the last 12 months, with three-fourths of those losses occurring since January.
Jindel said companies are expecting the soft economy to turn around within three to six months. However, he said an increase in business for the shipping sector is still a year to a year and a half away.
