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But when layoffs, quits and other separations are subtracted, the net gain is close to the 77,000 reported Friday for May. Layoffs increased in May to the highest level since July 2010. A weaker job market has also led to smaller pay increases. Wages for those who have jobs are barely keeping up with inflation. Without more jobs and higher pay, consumers won't have the income needed to fuel more spending and economic growth. The slow pace of hiring also suggests businesses aren't confident enough in the economy to add permanent employees. Nearly a third of the jobs added last month were temporary hires. That is usually seen as a good sign, because it indicates employers need more workers and will soon hire permanently. But many economists now say it suggests that companies are simply reluctant to add workers for the long term. Overall, the economy isn't growing fast enough to generate more jobs. The economy expanded at a 1.9 percent annual rate in the first three months of the year, down from a 3 percent pace in the final three months of last year. Growth likely didn't pick up much in the April-June quarter, economists say.
[Associated
Press;
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