May Jobs Report Fails To Meet Expectations

by timothy xian

The number of accessible jobs rising is something many people have been hoping for. The May jobs report did not live up to those expectations. This is not to say that there was no improvement, but the improvement was less than anticipated, which caused ripples within the stock market. Fewer than 50,000 non-farming private sector jobs were added, and also the biggest job growth over the last couple of months seems to be for the US Census.

Article Source: The latest jobs report is not as good as expected.

Slower growth according to the jobs report

The recently released May jobs report from the Department of Labor is not a forecast for the apocalypse. It would seem, though, that the unemployment rate is going to be done in with attrition. According to Forbes, the May jobs report showed a gain of 431,000 total jobs. The bulk of them are temporary. Of those, 411,000 were jobs with the US Census, which means an increase in employment is due in June when Census jobs end.

Slump of the private sector

The private sector did not fare well. The April jobs report had a gain in private sector employment of 218,000, but May took a turn for the worse and added a scant 41,000 jobs. It’s the lowest month since January for private sector hiring, so it would appear the rebuilding of the workforce is going to be a slow climb. On the plus side, however, the unemployment rate dropped to 9.7 percent from 9.9 percent in April.

Stock market slips

This has not been a great month for the stock markets. The slower job growth along with trouble in Europe precipitated a slip of the Dow and NASDAQ of 1.9 percent, when the S & P 500 fell 2 percent, according to CNN Money. It would appear that the rebound is taking longer than forecasted, both within the stock markets and in the job market.

Additional info at these websites

Forbes

forbes.com/feeds/ap/2010/06/04/general-technology-hardware-amp-equipment-us-economy_7661383.html?boxes=Homepagetopnews

CNN Money

money.cnn.com/2010/06/04/markets/markets_newyork/

Article submitted Friday, November 26, 2010 & read 4 times.

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