
The latest unemployment figures are out, and the first week of August bodes well for several countries, including the U.S. and Australia. However, some EU countries continue to see an increase in unemployment to nearly 20%, and the Chinese government is under pressure to create jobs. Finally, credit checks in the U.S. are keeping the jobless from work but some states are putting in new measures to prevent hiring biases based on a candidate’s credit history.
1. Job Losses Slow to 247,000; Unemployment Rate Dips (Washington Post)
The U.S. Labor Department released its unemployment figures today—the U.S. shed 247,000 jobs in July, less than the 325,000 jobs that economists had predicted and far fewer than the 467,000 jobs lost in June. Unemployment dipped to 9.4% after reaching 9.5% last month. While job losses have slowed, the number of people in the long-term unemployment bucket (or those unable to find work for 27 weeks or more) increased by 584,000 to 5 million.
2. Unemployment still rising in Europe (Business Week)
Jobless rates in the EU reached a 4-year high last month—8.9 percent for the 27 countries in the EU and 9.4% in the 16-member euro-zone. Among the hardest hit countries were Spain at 18.1%, followed by the Baltic states, Latvia at 17.2% and Estonia at 17%. On the other hand, Netherlands and Austria had the lowest unemployment at 3.3% and 4.4%, respectively. Overall, the pace of job losses in the EU is slowing down, the European Commission points out.
3. Australian July Jobs Surge May Bring Rate Rise Closer (Wall Street Journal)
Australia labor market expanded in July, contrary to economic forecasts, adding 32,000 new jobs and keeping its unemployment rate steady at 5.8% (seasonally adjusted). While economy did shed 16,000 jobs, employers created 48,200 part-time positions. In addition, employers are trying to combat layoffs by retaining staff and cutting back work hours.
4. China Jobless Pose a ‘Grave’ Crisis (BBC)
China is feeling the effects of the global downturn, and while no official unemployment figures have been released, the government did announce that they are under “enormous pressure” to create jobs. Those affected include 3% of China’s 66.5 million migrant workers and about one-third of recently graduated university student.
5. Another Hurdle for the Jobless: Credit Inquiries (New York Times)
With unemployment close to 10%, some employers are using credit checks to winnow their applicant pool, claiming that a credit check is a valuable tool for assessing a person’s judgment, reliability, or trustworthiness. However, those laid-off and struggling with foreclosure, bankruptcy, and mounting credit card bills are trapped from resolving their poor credit situation because they are unable to find work, and are at risk of falling deeper into credit problems. Certain U.S. states are instituting laws that restrict the use of credit check information in certain situations. For instance, Washington is preventing employers from using a candidate’s credit history unless it is substantially related to the job that a candidate is applying for; and Hawaii recently approved a new measure that allows credit checks only after an offer is made and when it is “directly related” to job qualifications.