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 registered a surprise sharp slowdown in May, with only 54,000 net new jobs added. 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.
Last month, unemployment had also risen faster than expected, up from 8.8% in March. 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 jittersStock 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 fearsRecession 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."