Sputtering Jobs Market Risks Damping U.S. Economic Expansion

[Purveyor]

The U.S. economy looks to be in danger of losing its main pillar as employers throttled back hiring in May to the lowest level in almost six years.

The slowdown -- payrolls rose by 38,000 after a downwardly revised 123,000 in April -- raised questions about the ability of consumers to keep spending at a good clip. It also cast doubts on Federal Reserve policy makers’ intentions to raise interest rates soon.



“It’s definitely the most concerning signal we’ve got recently,” said Michael Feroli, chief U.S. economist at JPMorgan Chase & Co. in New York.

Presumptive Republican presidential nominee Donald Trump immediately jumped all over the news, calling the jobs report “terrible” and a ”bombshell” in a tweet.

The reaction in financial markets was also swift. The Standard & Poor’s 500 Index retreated from a seven-month high, the dollar tumbled the most in more than two months against the euro, gold posted the biggest advance in 11 weeks, and the yield on the two-year Treasury note sank 10 basis points.

The deceleration in the labor market was widespread, with industries from construction and manufacturing to temporary-help services cutting workers.



Unemployment did drop, to an almost nine-year low of 4.7 percent last month from 5 percent in April. But even that was bad news as the decline was mainly because more Americans dropped out of the labor force rather than from an increase in employment.

more...

http://www.bloomberg.com/news/articles/2016-06-03/sputtering-jobs-market-risks-damping-u-s-economic-expansion

[Onlaketime]

1. The problem is that all the new jobs are paying a pittanc of what the old jobs used to pay.

Plus so many people have given up looking for work that they are no longer even counted as unemployed. They have simply fallen between the cracks and the government doesn't care. They fudge the numbers.

[Purveyor]

2. They have reason to use a faux employment rate. Many safety net programs kick in when the

rate rises above a certain level.

Can't have that now can we?

Must spend more on the military and foreign aid...

😕

[Onlaketime]

3. Yep, I think your right.

It looks like they are propping it all up with endless war overseas which is really another way of robbing the American taxpayers. The system is definitely broken at this stge.