Oh no! The bullshit meter just popped Obama's bubble with a giant dose of reality. Unemployment goes UP, bullshit cliches like "Recovery Summer" go DOWN.....
U.S. job growth fell sharply, jolting financial markets and raising new questions about the strength of the nation's economy.
The U.S. added a paltry 69,000 jobs in May, the lowest total in a year. April brought only 77,000 new jobs, far lower than initially reported. The jobless rate climbed for the first time since last summer, to 8.2%. And the manufacturing sector, a previous source of strength, is slowing.
The slower growth deals a severe blow to President Barack Obama as he fights for re-election, giving Republicans new leverage.
The collection of dismal reports comes on top of growing fears about European and Asian economies, and sent stocks sliding Friday morning.
With the U.S. economy looking weaker than it did just several weeks ago, pressure is mounting on the Federal Reserve to step in again with additional measures to stimulate growth. The divided Congress is expected to remain largely idle in an election year.
"The economy is shifting from 'muddling through' to paralysis," Pierpont Securities economist Stephen Stanley said.
A Historical ViewU.S. unemployment since 1948
The U.S. recovery appears to be tracking a similar pattern of the past three years, in which the economy gains steam during the winter only to run down in the spring and summer. But the situation this time is puzzling, given that there hasn't been a gas-price spike—prices instead have fallen--or a disaster, such as last year's Japanese earthquake and tsunami.
Instead, economists attribute the slower growth to a range of factors. A warmer winter than usual may have prompted businesses to hire earlier than they normally dol, boosting the jobs numbers early in the year. New concerns about Europe—including the prospect of a Greece exit from the euro—are rattling consumers and businesses. And uncertainty about domestic policy—including what happens with a variety of tax breaks that are set to expire at the end of the year—could be causing businesses to hold off on hiring.
The jobs report contained one small glimmer of hope: the workforce grew, a possible sign that more people felt more confident about their job prospects and began searching for work again.Friday's labor-market report was disappointing nearly all around. Job growth over the past three months is less than half the average 250,000-plus jobs added in the three earlier months—and nearly every sector has been hit. Workers saw their weekly hours cut, a sign of weaker demand from customers. The ranks of the long-term unemployed rose.
Tags: unemployment, jobs, economy, markets, job growth slows
Location: Washington, District of Columbia, United States (load item map)
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