Used Car News

The latest unemployment numbers show an economy in recovery, but far from recovered.

The U.S. economy added 431,000 jobs in May and the unemployment rate moved down to 9.7 percent.
The number included 411,000 temporary Census workers, though. And those may have been more workers than needed according to a recent report by Commerce Department’s Inspector General.
“We’re hiring the unemployed to count the unemployed,” said Manheim chief economist Tom Webb. “Still, it’s a job.”
The number of long-term unemployed stayed at 6.8 million. That is almost half of the total number of unemployed, a record high.
The bad news for used-car dealers is the highest unemployment rates occur among the least skilled workers. This group remains more likely to buy a used car if they have money.
The low real job creation in May surprised some, although warning signs appeared prior to the announcement.
The mass layoffs numbers for May were the highest since October of last year.
Better times may lay ahead.
More factories fired up in May, as the Institute for Supply Management’s Purchasing Managers’ Index rose in May.
That means more job creation
ISM’s Employment Index registered 59.8 percent in May, up from 58.5 percent in April. This is the sixth consecutive month of growth in manufacturing employment.
The non-manufacturing sector grew, as well, according to ISM. The sector added jobs in May for the first time in more than 2 years.
Consumers believe their job prospects are better as the Conference Board’s Consumer Confidence Index also rose in May.
Those anticipating more jobs in the months ahead increased to 20.4 percent from 17.7 percent, while those anticipating fewer jobs declined to 17.7 percent from 19.9 percent. The proportion of consumers anticipating an increase in their incomes improved to 11.3 percent from 10.5 percent.
That sunnier outlook seems warranted. A recent survey by the National Federation of Independent Business shows small business owners plan on increasing their hiring in the next three months.