Friday, June 1, 2012
Extra: Job Growth falters in May
Another blow to Obama's reelection Bid
Job growth in May was the weakest in a year and employers added far fewer jobs in the prior two months than previously reported, suggesting the economic recovery was faltering.
Employers created a paltry 69,000 jobs last month, the Labor Department said on Friday, the fewest since May last year. Economists polled by Reuters had expected nonfarm payrolls to increase 150,000.
In addition, employers added 49,000 fewer jobs than previously estimated in March and April. The unemployment rate rose to 8.2 percent from 8.1 percent as people flocked into the labor market.
While unseasonably warm weather that brought forward hiring into the winter months has been blamed for the step back in March and April, the latest report hinted at more fundamental weakness in the economy.
It could further shake confidence, coming on the back of a raft of soft regional factory surveys and a worsening of the debt crisis in Europe. Data on Friday also showed China's vast factory sector lost momentum in May.
Economists have blamed Europe's prolonged financial crisis and slowing Chinese growth for sluggish factory activity in May, which has evoked memories of the slackening of job growth in the summer of 2011 when the recovery nearly stalled.
However, a survey of households showed stronger employment gains. While the unemployment rate rose as new job seekers flooded into the labor force....
May saw a huge drop in the stock market, multiple miscues by the Obama reelection campaign and now extremely weak job numbers.