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60,000 Lose Jobs As Oil Prices Skyrocket

Published 06/30/08 Jeff Bennett - Print Article
E-mail - editor@economyincisis.org

America’s workforce shrank by 60,000 employees because of rising gas prices and the housing crisis, according to Bloomberg.com.

The manufacturing sector continued to shrink for the fifth straight month as consumers and businesses are purchasing less factory made material because of rising fuel costs. Stimulus checks provided a small buffer for the American economy, but fears arise spending and consumer confidence will decline and the economy will shrink considerably when the rebates fade.

Source Bloomberg.com:

Mounting job losses, record gasoline prices and tumbling home values have crushed consumer confidence, raising concern that spending will retrench once the lift from the tax rebates fades. Businesses are also purchasing less equipment as fuel costs soar, prompting factories to scale back.

Payrolls shrank by 60,000 workers, according to the median estimate of economists surveyed by Bloomberg News before the Labor Department's report on July 3. The unemployment rate may have fallen after jumping last month by the most in two decades.

…

Manufacturing, which accounts for about 12 percent of the economy, probably shrank for a fifth month in June, the Institute for Supply Management's factory index may show on July 1. The gauge probably fell to 48.6 from 49.6 the prior month, according to economists polled. A reading less than 50 signals contraction.

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