Unemployment Up in May, Jobs Stall
The government’s jobs report was released on Friday and showed that the national unemployment rate increased during May to 8.2%, for the first time in close to a year. If that was not enough bad news, the report also said that only 69,000 net jobs were added to the economy during May. That made the third consecutive month that disappointing lower than expected jobs were added.
Friday’s job numbers were less than 50% of what analysts had predicted. The Department of Labor also lowered their revised job growth number for both March and April. That put the average month’s growth in jobs at a dismal 96,000 for the past three months.
During the prior three-month period between December and February, job growth was on average 252,000 per month. This new data is certain to increase the fears that the U.S. economy has stalled similar to the past two years. It also might spell trouble for the reelection campaign for President Obama. Today, Obama is scheduled to visit a manufacturing facility for Honeywell in Minnesota.
With the problems from Europe wearing on the minds of investors, the big economies of India and China slowing down and overall global economic growth is slowing down, a serious threat to the economy of the U.S. is becoming more and more a possibility.
Just yesterday, the government said the gross domestic product for the U.S. had only grown at an annualized rate of 1.9% during the first quarter of 2012.