After a period of economic improvement, the unemployment rate remained unchanged in June from the previous month, indicating that conditions may have plateaued.
Last month, the unemployment rate was 8.2 percent, according to a report from the Bureau of Labor Statistics. This totaled an estimated 12.7 million jobless Americans. Although roughly 80,000 positions were created, this was not enough to improve the rate.
"The 80,000 rise in U.S. payroll employment in June provides further evidence that the U.S. economy has lost momentum since the turn of the year, but that the recovery is not yet in danger of grinding to a complete halt," said Capital Economics senior economist Paul Dales.
Meanwhile, the data may indicate that many Americans are no longer looking for work because they believe there are currently no jobs available where their experience is applicable, the report said. An estimated 821,000 people shared this sentiment. While this number may seem high, it was decline of 161,000 from June 2011.
These developments could be detrimental to the financial safety and soundness consumers have when making major investments, including buying homes. Until the unemployment rate improves, the housing market recovery may suffer.