The world largest economy's growth depend largely on its consumer demand. What if its people go jobless?
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Business Times - 07 Jun 2008
US jobless rate in May hits 5.5% (Excerpt)
Employers, worried about a sharp slowdown, clamp down on hiring
(WASHINGTON) The US unemployment rate jumped to 5.5 per cent in May - the biggest monthly rise since 1986 - as nervous employers cut 49,000 jobs.
The latest snapshot of business conditions showed a deeply troubled economy, with dwindling job opportunities in a time of continuing hardship in the housing, credit and financial sectors.
'It was ugly,' said Richard Yamarone, an economist at Argus Research.
With employers worried about a sharp slowdown and their own prospects, they clamped down on hiring in May, said yesterday's report from the Labour Department. The unemployment rate soared from 5 per cent in April to 5.5 per cent in May. That was the biggest one-month jump in the rate since February 1986. The increase left the jobless rate at its highest since October 2004.
The big jump in the unemployment rate surprised economists who were forecasting a tick-up to 5.1 per cent. Payroll losses, however, weren't as deep as the 60,000 that analysts were bracing for. Still, job losses in both March and April turned out to be larger than the government previously reported. Employers now have cut payrolls for five straight months.
The White House expressed disappointment too.
'Certainly this isn't a report that we wanted to see today,' White House deputy press secretary Scott Stanzel said. He acknowledged that the increase was higher than experts expected.
'It is a number that is too high in our view but it is lower than the average of the last three decades.'
The 5.5 per cent rate is relatively moderate judged by historical standards. Yet, there was no question that employers last month sharply cut jobs.
The government said the number of unemployed people grew by 861,000 in May, rising to 8.5 million. The over-the-month jump reflected more workers losing their jobs as well as an increase in those coming into the job market - especially younger people - to look for work, the Bureau of Labour Statistics said.
US jobless rate in May hits 5.5% (Excerpt)
Employers, worried about a sharp slowdown, clamp down on hiring
(WASHINGTON) The US unemployment rate jumped to 5.5 per cent in May - the biggest monthly rise since 1986 - as nervous employers cut 49,000 jobs.
The latest snapshot of business conditions showed a deeply troubled economy, with dwindling job opportunities in a time of continuing hardship in the housing, credit and financial sectors.
'It was ugly,' said Richard Yamarone, an economist at Argus Research.
With employers worried about a sharp slowdown and their own prospects, they clamped down on hiring in May, said yesterday's report from the Labour Department. The unemployment rate soared from 5 per cent in April to 5.5 per cent in May. That was the biggest one-month jump in the rate since February 1986. The increase left the jobless rate at its highest since October 2004.
The big jump in the unemployment rate surprised economists who were forecasting a tick-up to 5.1 per cent. Payroll losses, however, weren't as deep as the 60,000 that analysts were bracing for. Still, job losses in both March and April turned out to be larger than the government previously reported. Employers now have cut payrolls for five straight months.
The White House expressed disappointment too.
'Certainly this isn't a report that we wanted to see today,' White House deputy press secretary Scott Stanzel said. He acknowledged that the increase was higher than experts expected.
'It is a number that is too high in our view but it is lower than the average of the last three decades.'
The 5.5 per cent rate is relatively moderate judged by historical standards. Yet, there was no question that employers last month sharply cut jobs.
The government said the number of unemployed people grew by 861,000 in May, rising to 8.5 million. The over-the-month jump reflected more workers losing their jobs as well as an increase in those coming into the job market - especially younger people - to look for work, the Bureau of Labour Statistics said.
