An economy stuck in the doldrums

The outlook for the American economy darkened, as the latest jobs report showed it settling into a prolonged stagnation.

What happened

The outlook for the American economy darkened this week, as the latest jobs report showed it settling into a prolonged stagnation. The economy added only 80,000 jobs in June, beneath analysts’ expectations, and the unemployment rate remained at 8.2 percent for a second straight month. Only 225,000 jobs were created in the second quarter of 2012, compared with 697,000 jobs in the first three months of the year. Economists now say the unemployment rate is unlikely to dip below 8 percent by November, presenting a serious threat to President Obama’s re-election. Obama attempted to put a positive spin on the numbers, saying he inherited the worst economy since the Great Depression, and that private sector businesses had made “steady progress” on his watch, adding 4.4 million jobs over the past 28 months. “We’ve got to grow the economy even faster, and we’ve got to put even more people back to work,” he said.

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