Job growth falters in May

[WallyWeaver]

Job growth falters in May

By Lucia Mutikani Posted 2012/06/01 at 8:36 am EDTWASHINGTON, June 1, 2012

(Reuters) — Job growth in May was the weakest in a year and employers added far fewer jobs in the prior two months than previously reported, suggesting the economic recovery was faltering.

Employers created a paltry 69,000 jobs last month, the Labor Department said on Friday, the fewest since May last year. Economists polled by Reuters had expected nonfarm payrolls to increase 150,000.

In addition, employers added 49,000 fewer jobs than previously estimated in March and April. The unemployment rate rose to 8.2 percent from 8.1 percent as people flocked into the labor market.

While unseasonably warm weather that 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.

It could further shake 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.

However, a survey of households showed stronger employment gains. While the unemployment rate rose as new job seekers flooded into the labor force.

The weak payrolls report could cause the Federal Reserve to move closer to launching a third round of bond purchases to shore up the economy. It could also exert more pressure on President Barack Obama, who faces a tough re-election campaign in November.

The level of employment is still 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, driven by an increase in residential construction.

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.

Link: http://www.newsdaily...a-economy-jobs/

[WallyWeaver]

Hey WW,

I think I will need to eat Crow! After watching what happened this morning, I believe QE3 is very possible! Personal Consumption Expenditure is under 2%. That is Ben Bernanke's favorite measure to use when deciding on stimulus or not.

Gold was definitely rising on hopes of QE!

I'm not ready gloat yet, 20.... but I'm close.

I was actually hoping you would be right so I would be able to make one last round of AGQ purchasing before the baloon popped. But that may be out the window, now. Jim Sinclair thinks if 1 more round of full-on QE happens this month gold will see $3000/oz. within 24 months. Pretty bold....

Actually, I want to see what happens on Monday in the markets. That will give me a better feel for what happens next, I suppose.

On a side note, did you see the jobs numbers? Absolutely unbelievable..... the jobs numbers for March and April were revised yielding 49,000 fewer jobs? Man, if this doesn't show that the Labor Department is protecting the White House I don't know what does. I can remember news show after news show, over the last few months, with supporters of the President pushing what a great job he is doing. "After all," they would say," look at the improving economy. That's the evidence that the President's plan is working." Talk about eating crow.... today is a crow buffet for those folks. If you couldn't tell, it irks me.

Also, I do want to make it clear that it really doesn't matter who's wrong and who's right on the investment stuff. I just love the fact that I have a place to come to to share investing ideas with some bright people. I look at it more as we are all watching out for each other so we can all maximize our profits.

WW.

[WallyWeaver]

Very volatile times!

Indeed.

Glad to read you got out with all of your profits in tact.

WW.