Posted by: The Busy Post | June 1, 2012

Job growth stumbles, boosting pressure on Fed – Yahoo! Finance


English: Graph of US Civilian Labor Participat...

Seriously, what else can the Fed do?

Pay people to borrow money?  We are already risking hyper-inflation.

WASHINGTON (Reuters) – Job growth braked sharply in May and the unemployment rate rose for the first time since June, putting pressure on the Federal Reserve to ease monetary policy further to shore up the sputtering recovery.

The Labor Department report on Friday, which showed employers added a paltry 69,000 jobs to their payrolls last month, the fewest since May last year, is also troubling news for President Barack Obama ahead of November’s elections.

The unemployment rate rose to 8.2 percent from 8.1 percent partly because people flocked into the labor market.

Economists polled by Reuters had expected nonfarm payrolls to increase 150,000 and the jobless rate to hold steady at 8.1 percent.

While unseasonably warm weather, which 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.

“Some had believed that we had decoupled from China slowing and all the problems in Europe, but that seems to be short-sighted,” said Malcolm Polley, president and chief investment officer of Stewart Capital Advisors in Indiana, Pennsylvania. “We’re slowing alongside the rest of the world.”

Employers added 49,000 fewer jobs than previously estimated in March and April. The report further eroded 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.

Stock index futures fell sharply after the jobs data. Government debt yields also fell sharply, with the 10-year note below 1.5 percent. The dollar also fell against the yen.

However, a survey of households showed stronger employment gains. Though the unemployment rate rose, as more people sought work.

The weak payrolls report could cause the Federal Reserve to move closer to launching a third round of bond purchases.

“This puts the Fed firmly in play and they will likely feel compelled to respond. The missing ingredient preventing the Fed from action had been the equity market, but now we are seeing it softening,” said Tom Porcelli, chief economist at RBC Capital Markets in New York.

The level of employment is about 5 million jobs below where it was in December 2007, when the economy fell into recession.

Analysts say the economy needs to create roughly 125,000 jobs a month just to keep the unemployment rate steady.

The labor force participation rate – the share of working-age Americans who either have a job or are looking for one – rose to 63.8 percent after dropping to a 30-year low in April.

Job gains were weak across the board last month, with the private sector adding only 82,000 positions. Government payrolls dropped by 13,000, dragged down by ongoing belt-tightening by local governments.

Construction employment fell 28,000 in May, the fourth straight decline. Manufacturing, the recovery’s star performer, added 12,000 jobs.

Given the high unemployment rate, average hourly earnings rose only two cents and the average workweek fell to 34.4 hours.

Slower income growth is holding back consumer spending. A report from the Commerce Department showed consumer spending rose 0.3 percent in April after gaining 0.2 percent in March.

via Job growth stumbles, boosting pressure on Fed – Yahoo! Finance.

About these ads

What are your thoughts?

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

Categories

lidsamy

when 140 characters is not enough

Political Alchemist's Blog

A conservative wizard's WordPress.com site

Can America Survive Obama, Harry Reid & Nancy Pelosi?

Never has a U.S. president & the Democrat Party been so wrong about so much at the expense of so many.

A Patriotic Nurse

God, Country, Constitution

sharia unveiled

illuminating minds

moralmatters.org

A website of news commentary, comments and articles, - highlighting moral, political and spiritual issues.

saneromeo

"In a time of universal deceit - telling the truth is a revolutionary act." George Orwell

Nonoy Manga

Manga, Hand Drawn, Animation, Drawing Lessons.

The Clockwork Conservative

All wound up about politics, history, culture... lots of stuff.

Conservative First

putting principles before party and technology into politics

divadoll123

Absolutely, positively, and unequivocally NOT an Obamamama!

Illuminutti

Where critical thinking is critical to thinking

The Busy Post

------ "Nowhere at present is there such a measureless loathing of their country by educated people as in America." ------ Eric Hoffer

22MOON.COM

You can see the whole Earth from the Moon!

All Mirth and No Matter

opinions on writing, reading and pretty much anything not 'rithmatic

The United States Patriot

A topnotch WordPress.com site

rodalena

"A fool also is full of words…" -Ecclesiastes 10:14a

A Reformed Thought

News from around the block, around the country, and around the world.

et cetera*

Asininities of the Human Kind

Oyia Brown

A WordPress site to give you a smile

AmeriKim Patriot

Extreme American and PROUD!

Texana's Kitchen

Yummy food. Pithy commentary. Pretty pictures.

STI News

Politics Music News Satire And Entertainment

We Moved > Go To:

WWW.THEMADJEWESS.NET

rope

people just need enough rope

Economists For Romney

Economists Supporting Mitt Romney for President

Just Cruisin 2

Where Intellectuals and Rednecks foregather.

Armor of God

Attempting to obey God and follow Jesus Christ our Lord

YouViewed/Editorial

News , Blues and Guns ... Not Necessarily In That Order

Douglas Ernst

Bareknuckled Commentary mixed with Pop Culture.

So I Married A Baseball Player...

Behind every married baseball player is a woman who didn't know what she was getting herself into.

living is a process

...so please be patient with me.

blogsense-by-barb

at the Re-Birth of America!

SOYLENT GREEN

Just What You Need When You're Freezing In The Dark

ahsbling

More Than Your Ordinary Bling

Real Life Dynamics User

Real Life Experiences With Microsoft Dynamics GP / CRM

Common Sense Newz

"The cause of America is in a great measure the cause of all mankind" Thomas Paine, Common Sense, 1776

Young, Republican, & Free

Politics; As Seen by an Eighteen Year Old Republican

The Steadfast Patriot

Where Common Sense Reigns Supreme

The Mad Jewess

Mirror Site For Reflection

Samaritans Scalawags Scoundrels Fleecing the Sheep

Skulking Down the Dirt Roads of Life

Common Sense

Life, liberty and property!

4ever21christina

A blog for the happy, modern, well-rounded woman

Clement Allen Photography

Updates about my gliding and photographic life will appear here.

southernstylemusings

An Amateur Economist's Perspective on the Political Battlefield

Without wax /

Andy Ritchie blog

The RAP Sheet

(opinions of that rarest of creatures: a Republican Atheist Professor)

Follow

Get every new post delivered to your Inbox.

Join 2,320 other followers

%d bloggers like this: