Job Data Casts Pall Over Economic Recovery
The Labor Department released the job growth numbers for the month of May on Friday. The report showed that 431,000 jobs were added and the unemployment rate fell to 9.7%. However, 411,000 of the new jobs were temporary census workers. The private sector was expected to create between 150,000 and 180,000 jobs, but only 41,000 were created. The number of Americans out of work for 27 weeks or more is at its highest level since data began being collected in the 1940's. To absorb new workers entering the market, the economy needs to add 100,000 jobs a month, and with state and local governments struggling, analysts fear more people may be looking for work soon. Factory employment has been rising steadily, and hours and wages for manufacturing employees rose. Analysts caution against too much reaction to the numbers, most saying that this is not a signal of worsening economic trouble.
See "Job Data Casts Pall Over Economic Recovery", Michael Powell, The New York Times, June 6, 2010