US Unemployment Rose to 9.2% in June 2011

According to the US Chamber of Commerce report, about 64% (two-thirds) of small business executives cited that they weren’t expecting to add to their payrolls in the next year and another 12% said they were planning to cut the jobs. Only 19% of the respondents said that they would expand their work forces.

According to the Labor Department report, employers added few jobs in June 2011 and the US unemployment rate increased to 9.2%. These low numbers indicate that the recovery is losing momentum and many economists have already lowered their forecasts for economic growth for the second half of 2011.

According to the SBA (Small Business Administration), small businesses (having less than 500 employees and having revenue of less than or equal to $25 million) employ about half of the workers in the private sector.

The survey found that more than half of the small business executives felt that economic uncertainty is the main reason for holding back on hiring. About a third cited the reason as poor sales and only 7% cited problems getting credit.

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