U.S. Payrolls Fell 49,000 in May, Jobless Rate Jumps to 5.5%

[swag]

Source: Bloomberg

June 6 (Bloomberg) -- The U.S. lost jobs in May for a fifth month and the unemployment rate rose by the most in more than two decades, signaling the world's largest economy is stalling.

Payrolls fell by 49,000, a smaller decline than forecast, after a 28,000 drop in April that was more than initially reported, the Labor Department said today in Washington. The jobless rate increased to 5.5 percent from 5 percent, the biggest jump since February 1986.

Employers are lowering expenses to protect profits as raw- material costs soar and sales slow. A weaker job market is another blow to Americans hit by falling home values, scarcer credit and higher fuel bills, adding to the risk that the longest consumer-spending expansion on record will come to an end.

``More payroll losses are in store in coming months,'' Carl Riccadonna, an economist at Deutsche Bank Securities Inc. in New York, said before the report. ``It corroborates fears of a consumer slowdown or a recession. That's a major concern right now.''



Read more: http://www.bloomberg.com/apps/news?pid=20601087&sid=aZ6VzqO8N1Ag&refer=home

[uppityperson]

1. k&r

[Robbien]

2. 750,000 new jobseekers in the last five months. How many total jobs were lost

during that period?

One would expect there is a deficit of over a million jobs when adding up all the new entrants and newly lost jobs. It is a mystery on which industry one can expect to enough growth to accommodate all the newly unemployed people.

[Roland99]

3. But...but...but ADP said there 45,000 net new jobs!

Don't pay attention to the negative ninnies.

Everything is *just* fine.


Trust us.

[Zodiak]

4. It's much worse than this

Remember that the books have been cooked for some time.