Dismal Jobs Report: Only 69,000 Hires In May

new jobs in May 2012By Christopher S. Rugaber


WASHINGTON -- U.S. employers created 69,000 jobs in May, the fewest in a year, and the unemployment rate ticked up. The dismal jobs figures could fan fears that the economy is sputtering.

The Labor Department also says the economy created far fewer jobs in the previous two months than first thought. It revised those figures down to show 49,000 fewer jobs created. The unemployment rate rose to 8.2 percent from 8.1 percent in April, the first increase in 11 months. Dow Jones industrial average futures, which were already down 100 points before the report, fell an additional 100 points within minutes of its release.

The yield on the benchmark on the 10-year Treasury note plunged to 1.46 percent, the lowest on record, suggesting that investors are flocking to the safety of U.S. government bonds.

The price of gold, which was trading at about $1,550 an ounce before the report, shot up $30. For much of the past three years, investors have seen gold as a safe place to put their money during turbulent economic times.


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The economy is averaging just 73,000 jobs per month over the past two months -- roughly a third of 226,000 jobs created per month in the January-March quarter.

Weak job growth could damage President Barack Obama's reelection prospects. Mitt Romney, the Republican challenger, has made the economy the central theme of his campaign.

There are signs that business confidence is waning. Companies have cut their spending on computers and machinery for two straight months, goods that signal investment plans. And some regional surveys suggest the factory activity is expanding at a slower pace.


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Consumers are also more downbeat about the economy, according to a May survey from the Conference Board. That could lead more Americans to cut back on spending, which drives 70 percent of economic growth.

Construction jobs plummeted 28,000, the steepest drop in two years. Professional services, government, hotels, restaurants and other leisure industries.

Not all industries cut jobs. Manufacturers added 12,000 jobs. Transportation and warehousing created nearly 36,000.

Businesses are facing a growing threat from Europe's financial crisis, which has worsened in recent weeks. The crisis is driving up borrowing costs for Spain and Italy and spreading to the banking system. Greece could be forced to exit the euro, which could push the region into a sharp recession. That could limit U.S. growth.


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Bracing For a Bad May Jobs Report

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generalp2

Something is amiss with this report. There are job postings all over the place. There are many jobs -- maybe people have made adjustments in their lives and are no longer looking? They shouldn't be looking at the number of hires but rather the number of open jobs. If one is up and the other down, then the issue is a skill gap, a loss of interest in working (maybe due to extending unemployment benefits) or a timing issue. They should also measure the number of people actively looking for a job (do it by skill type and see how the job seekers' skills line up with the skills needed in the jobs posted. ). I'd bet there is a big gap.

June 01 2012 at 2:40 PM Report abuse rate up rate down Reply
D.L. WILLIAMS

The world is changing quickly. The very rich have finally run out of tricks and the revolutions will begin in countries where such is not an every day event. The working class in all industrialized nations have had enough of the greed and theft of the treasures of their countries. The leaders have to get real! If that is at all possible at this point. Good luck to all every where. Remember your neighbor and stick together.

June 01 2012 at 11:39 AM Report abuse +1 rate up rate down Reply
tom

I hear a lot of name calling side to side on the issues of jobs in AMERICA, and few looking at the past 50 year history of AMERICA . (Profits fuel business,,business fuel jobs ) our form of government is capitalism based on profit ... When I was young pollution laws had to be put in effect to protect AMERICANS LIKE US, from abuses by businesses for profit,, Then is when business figured out it was much more profitable to use the technoligy america had amassed in free enterprise, move manufacturing out of the USA and not abide by our laws and bring the product back in and sell it for the same price and make more profit..Steel industry, then chemical industry The first of a steady procession of jobs (working class people) we are talking about.. No Laws Just currupt governments less overhead more profit, NO IMPORT PENALTIES FOR BREAKING AMERICAN LAWS ,,, SWEET MORE PROFITS...!!!! That is the new normal world order in AMERICA

June 01 2012 at 11:35 AM Report abuse rate up rate down Reply
1 reply to tom's comment
mhcontain

Yes and they had another system that had no profit. How did that work out comrade?

June 01 2012 at 1:48 PM Report abuse rate up rate down Reply
1 reply to mhcontain's comment
tom

My friend you are part of the problem NO answers JUST ACCUSATIONS I said nothing of communism and I don't think the founding fathers did,,Oh that is right China is communist forgive me,, and sir I am 100% AMERICAN,,,NOT REPUBLICAN OR DEMOCRAT How dare you... I'll gladly hear what you precieve was untrue BE CAREFUL SOME IN THE WORLD ARE ENLIGHTEND YOU MY APPEAR FOOLISH

June 01 2012 at 2:05 PM Report abuse rate up rate down
JoyA

Big Business always holds back on hiring, amongst other things, when a Dem. is in office. Their tax breaks come from the Rep. party, so they try to make sure every Dem. is a one-term President

June 01 2012 at 11:00 AM Report abuse rate up rate down Reply
Maddy

Yet, Texas has completely cut emergency unemployment benefits as of May 12tth, per the Federal Govt We had 2 weeks notice that our income we'd been counting on is gone. I was counting on it to pay the bills while trying to get my own business off the ground. Well, paying bills, air conditioning in Texas, and eating are over rated. Enjoy another vacation in Hawaii Mr. President.!

June 01 2012 at 10:56 AM Report abuse +1 rate up rate down Reply
2 replies to Maddy's comment
sfields435

Obama is not responsible for the cut to your UE benefits. The GOP -- and the GOP alone -- has backed those cuts. Blame them.

June 01 2012 at 10:59 AM Report abuse rate up rate down Reply
Patricia Weidl

You ought to contact the dept. of labor over this. I don't believe it could have been the federal government who took this action, more like Rick Perry. Rick Scott here in FL is trying to pull the same stuff. Pres. Obama has extended unemployment several times over.

June 01 2012 at 12:28 PM Report abuse rate up rate down Reply
Thamra

If our wonderful government wouldn't have caused or let American companies and jobs go out of our country years ago we wouldn't be in the trouble we are now. For those backing this crook Romney he is or was much of the problems and causes for our companies and jobs to be elimitated. If you don't know he bought up companies in trouble mainly because of the government down sized them which meant laying off workers and reducing benefits by a lot and made millions doing it. Yeah great guy for American's. Maybe the wealthy with 7 or 8 off shore bank accounts and I'm sure it runs into the millions.

June 01 2012 at 10:55 AM Report abuse +2 rate up rate down Reply
Thamra

If our wonderful government wouldn't have caused or let American companies and jobs go out of our country years ago we wouldn't be in the trouble we are now. For those backing this crook Romney he is or was much of the problems and causes for our companies and jobs to be elimitated. If you don't know he bought up companies in trouble mainly because of the government down sized them which meant laying off workers and reducing benefits by a lot and made millions doing it. Yeah great guy for American's. Maybe the wealthy with 7 or 8 off shore bank accounts and I'm sure it runs into the millions.

June 01 2012 at 10:54 AM Report abuse -1 rate up rate down Reply
jlopesconcrete

According to unaltered labor statistics, there are approximately 88 million able bodied American workers from the age of 18 to 65 out of work. Some are looking for work, others aren't, some are receiving unemployment checks and some aren't.

The census told us we have approximately 350 million Americans living today. If you do the math, the unemployment rate is 25%, similar to that of most European nations. If you only count those collecting unemployment benefits, as Obama and the Obama media report, the unemployment rate is around 8%. They leave out everybody else. As unemployment benefits run out, less and less people collect and the Obama media tell us the unemployment rate is going down. THIS IS SICKENING.

You decide what number you want to follow.

June 01 2012 at 10:50 AM Report abuse rate up rate down Reply
1 reply to jlopesconcrete's comment
sfields435

You are counting as unemployed --- in your 25% rate -- all those who are 18 and over who are in college or grad/medical/law school, and not seeking employment, all those who have chosen to retire before the age of 65, all of those who have chosen to be full time parents ( like Mrs Romney & Mrs Obama, and 1/2 of the women I know...all UE, currently, and not seeking work), all the disabled. That's why some of those folks you are trying to lump into the UE are "not getting checks" -- they don't want to be part of the workforce...and your # is vastly,vastly inflated.

June 01 2012 at 11:11 AM Report abuse rate up rate down Reply
davewilliams2005

The economy is 'tanking' not sputtering. Give Obama another TRILLION for his SHOVEL READY jobs. Maybe he will get it right this time.

June 01 2012 at 10:50 AM Report abuse -1 rate up rate down Reply
Frank

start you own business as my wife and i did,when laid off eight years ago.........dont rely on anyone to pull you out of trouble,including the government.they are working for theyre own causes.............we as americans are on our own,the ship aready sank...........years ago.......the rats arehanging on by the millions ,thinking the government owes them..........wealfare,99weeks unemployed,overpaid government elected,overpaid sports atheletes..............GET ON WITH YOUR LIVES!!!!!!!!!!!!!!!!!!!!!!!!!!

June 01 2012 at 10:48 AM Report abuse -1 rate up rate down Reply

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