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To: SmoothSail who wrote (429909)	6/3/2011 1:20:43 PM
From: greenspirit	Respond to of 793966

Obamanomics is now in full swing....Staglation has arrived... May jobs growth slows to 54,000, a nine-month low Jobless rate up to 9.1%, worst since DecemberStories You Might Like In disappointing news for the White House, Wall Street and Main Street, U.S. job gains slowed to a crawl in May and the unemployment rate moved higher, the Labor Department estimated Friday. Nonfarm payrolls rose by a seasonally adjusted 54,000 in May. This is the smallest gain since September and a fraction of the 125,000 jobs expected by economists polled by MarketWatch. That forecast had been cut in recent days as economists grew pessimistic after a string of disappointing data this week. Just a few days ago, economists were expecting jobs growth of 175,000 jobs in the month. The official unemployment rate increased to 9.1% in May from 9.0% in April. This is the highest unemployment rate since December. Economists were expected a slight drop in the jobless rate to 8.9%. “While one month does not make a trend and we are coming off three solid report payroll reports, today’s employment report not only confirms the recent softening in the economic data, but suggests that momentum is slowing sharper relative to market expectations,” said Neil Dutta, an economist at Bank of America Merrill Lynch. The unemployment report adds to fears that the U.S. economy may have hit more than a soft patch and that a more protracted and dangerous downturn could be in the offing. U.S. stocks traded lower on Friday, two sessions after the Dow Jones Industrial Average /quotes/comstock/10w!i:dji/delayed DJIA -0.36% had the biggest one-month drop since July. Oil and silver futures also dropped. Read Market Snapshot. Economists blamed the slowdown on higher gasoline prices and a slowdown in manufacturing caused by lack of parts from earthquake-wracked Japan. “The deceleration in employment growth, together with a string of disappointing results on other indicators, calls into question the sustainability of the recovery,” said David Greenlaw of Morgan Stanley. “However, we are still inclined to believe that this is a temporary soft patch reflecting supply chain disruptions, a spike in gasoline prices (which has been partially unwound), and weather-related influences.” The government rejected the notion that deadly storms in the Midwest and the South played a role. “We found no clear impact of the disasters on the national employment and unemployment data for May,” said Keith Hall, commissioner of the Bureau of Labor Statistics, in a statement. Total payrolls were revised down by 39,000 for March and April. March’s gain was revised to 194,000 from 221,000, while April’s gain of 244,000 was revised to a gain of 232,000. There was no sign that hiring at McDonald’s boosted payrolls. Food and drinking employment rose by 13,600 jobs in May after adding 28,000 workers in April. “The breakdown of the leisure category suggest that the so-called McDonald’s effect was probably even smaller than the +25,000 or so that we had anticipated,” said Greenlaw marketwatch.com