For the first time in four years, U.S. employment contracted as a result of huge drops in construction and manufacturing payrolls, reports Jeff Testerman of BrokerHunter.com. Fears that the slowdown in housing has affected the overall economy have led the Federal Reserve to lower rates for the first time in four years in an effort to help the mortgage and housing industries.
In addition, previous employment reports were also revised sharply downward; with the most dramatic restatement being for June, cutting the job growth to nearly half of what was previously reported, Testerman explains. The average employment rate has fallen to under 45,000 for the last three months compared to over 145,000 for the period between January and May of 2007.
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