This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at http://www.bbc.co.uk/go/rss/int/news/-/news/business-13643716
The article has changed 8 times. There is an RSS feed of changes available.
Version 1 | Version 2 |
---|---|
US employment growth registers sharp slowdown in May | US employment growth registers sharp slowdown in May |
(40 minutes later) | |
US employment growth slowed sharply in May, with only 54,000 net new jobs added during the month. | |
Markets had expected a rise of 150,000. It follows a downwardly revised but still rapid 232,000 increase in April. | Markets had expected a rise of 150,000. It follows a downwardly revised but still rapid 232,000 increase in April. |
Despite the slowdown, it was the eighth month in a row of positive employment growth, according to data from the US Labor Department. | Despite the slowdown, it was the eighth month in a row of positive employment growth, according to data from the US Labor Department. |
The unemployment rate also rose unexpectedly to 9.1%, from 9% a month earlier. | The unemployment rate also rose unexpectedly to 9.1%, from 9% a month earlier. |
The number of unemployed remained largely unchanged at 13.9 million, but the number of long-term unemployed - out of work for more than 26 weeks - rose by 361,000 to 6.2 million. | |
Stock market jitters | Stock market jitters |
The private sector created 83,000 new jobs in the month, while local governments reduced their headcount for the the 22nd month in a row, by an unusually large 28,000. | The private sector created 83,000 new jobs in the month, while local governments reduced their headcount for the the 22nd month in a row, by an unusually large 28,000. |
"Job gains continued in professional and business services, health care, and mining," said the Bureau of Labor Statistics. | "Job gains continued in professional and business services, health care, and mining," said the Bureau of Labor Statistics. |
Total employment in the US still remains nearly 5% below the pre-recession peak it registered nearly three-and-a-half years ago, in what has been the worst jobs recession since World War II. | Total employment in the US still remains nearly 5% below the pre-recession peak it registered nearly three-and-a-half years ago, in what has been the worst jobs recession since World War II. |
The employment and unemployment figures are collected using different methods. | The employment and unemployment figures are collected using different methods. |
Stock markets fell sharply following the data release, with the FTSE 100 index falling 0.8%, before bouncing back slightly. | Stock markets fell sharply following the data release, with the FTSE 100 index falling 0.8%, before bouncing back slightly. |
"It's a bad report but not a horrible one because we are adding jobs nonetheless, just less than what we want," said Mark Lamkin of Lamkin Wealth Management. | "It's a bad report but not a horrible one because we are adding jobs nonetheless, just less than what we want," said Mark Lamkin of Lamkin Wealth Management. |
"People sell first and ask questions later, so after these numbers we are in for a rough day [on the stock market]." | "People sell first and ask questions later, so after these numbers we are in for a rough day [on the stock market]." |
Recession fears | Recession fears |
The figures mirror similarly disappointing US economic data released in the last week, including apparent slowdowns in the manufacturing sector and in consumer spending. | The figures mirror similarly disappointing US economic data released in the last week, including apparent slowdowns in the manufacturing sector and in consumer spending. |
It all points to a marked slowdown in the US economy during the second quarter of the year, according to Nigel Gault, chief US economist at IHS Global Insight. | It all points to a marked slowdown in the US economy during the second quarter of the year, according to Nigel Gault, chief US economist at IHS Global Insight. |
"[The jobs report] is weak across the board," he said. "We can't point to any one special factor and say that makes this an aberration. | "[The jobs report] is weak across the board," he said. "We can't point to any one special factor and say that makes this an aberration. |
However, he remains upbeat about the outlook for the second half of the year: "We have seen some easing in commodity prices, gasoline prices are starting to come down, and the bad effects on vehicle production of the Japanese problems will start to unwind." | However, he remains upbeat about the outlook for the second half of the year: "We have seen some easing in commodity prices, gasoline prices are starting to come down, and the bad effects on vehicle production of the Japanese problems will start to unwind." |
But the figures may resurrect fears of a possible slide back into recession, analysts warn. | But the figures may resurrect fears of a possible slide back into recession, analysts warn. |
And that prospect will fuel speculation that the US Federal Reserve may embark on a third round of "quantitative easing" - purchasing government bonds to pump more cash into the financial system - later this year. | And that prospect will fuel speculation that the US Federal Reserve may embark on a third round of "quantitative easing" - purchasing government bonds to pump more cash into the financial system - later this year. |
"Arguing about the merits of whether QE3 would be a good idea, is irresponsible right now," said Tod Schoenberger, managing director at Landcolt Trading in Delaware. | "Arguing about the merits of whether QE3 would be a good idea, is irresponsible right now," said Tod Schoenberger, managing director at Landcolt Trading in Delaware. |
"It would be proactive for the [Federal Reserve's monetary policy committee] to discuss and develop a strategy for implementing QE3, because it's painfully clear the United States is headed for a very messy second half of 2011." | "It would be proactive for the [Federal Reserve's monetary policy committee] to discuss and develop a strategy for implementing QE3, because it's painfully clear the United States is headed for a very messy second half of 2011." |