Friday, June 1, 2012

NO SURPRISE: Job Growth Slows -

REPORT: U.S. job growth fell sharply, jolting financial markets and raising new questions about
the strength of the nation's economy.

The U.S. added a paltry 69,000 jobs in May, the lowest total in a year. April brought only 77,000 new jobs, far lower than initially reported. The jobless rate climbed for the first time since last summer, to 8.2%. And the manufacturing sector, a previous source of strength, is slowing.

The collection of dismal reports comes on top of growing fears about European and Asian economies, and sent stocks sliding Friday morning.

The slower growth deals a severe blow to President Barack Obama as he fights for re-election, giving Republicans new leverage.

With the U.S. economy looking weaker than it did just several weeks ago, pressure is mounting on the Federal Reserve to step in again with additional measures to stimulate growth. The divided Congress is expected to remain largely idle in an election year.

"The economy is shifting from 'muddling through' to paralysis," Pierpont Securities


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