Thread: US unemployment rate jumps to 5.5 percent in May, biggest...

US unemployment rate jumps to 5.5 percent in May, biggest rise since 1986; payrolls cut again
By JEANNINE AVERSA (AP Economics Writer)
From Associated Press
June 06, 2008 7:43 AM EDT

WASHINGTON - The U.S. unemployment rate jumped to 5.5 percent 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 job opportunities dwindling in a time of continuing hardship in the housing, credit and financial sectors.

With employers worried about a sharp slowdown and their own prospects, they clamped down on hiring in May, said Friday's report from the Labor Department. The unemployment rate soared from 5 percent in April to 5.5 percent 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 percent. 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 5.5 percent rate is relatively moderate judged by historical standards. Yet, there was no question that employers last month sharply cut jobs in manufacturing, construction, retailing and professional and businesses services. Those losses swamped gains elsewhere, including in the education and health fields, government and leisure and hospitality.

The government said the number of unemployed people grew by 861,000 in May - rising to 8.5 million. The over-the-month jump in unemployment reflected more workers losing their jobs as well as an increase in those coming into the job market to look for work, the Bureau of Labor Statistics said.

A year ago, the number of unemployed stood at 6.9 million and the jobless rate was 4.5 percent.

A trio of crises - housing, credit and financial - have rocked the economy. That's caused economic growth to slow to a crawl as businesses and consumers have tightened their belts. Spiraling energy costs are another negative force.

The country's economic problems are a top concern for voters - and thus for President George W. Bush, members of Congress and those vying to win the White House this fall.
Copyright 2008 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

http://enews.earthlink.net/article/top? ... -283711664

Boosh's disastrous (suicidal?) economic policies coming home to roost.

I can tell, as now I have about 3 non english speaking dudes coming to my floor covering store per week looking to steal someone's job.

I can't help but be rude to them.

The author of the AP article above neglected to say that the US has lost over 300,000 jobs since the beginning of this year. That doesn't mean, we didn't grow 300,000 jobs we thought we otherwise would have gained (eg. just a slowdown in the rate of increase); it was an actual (absolute) declining number of jobs.

...And OBL idiots want to bring more people into the country to do what exactly???

...And OBL idiots want to bring more people into the country to do what exactly???

Really? What jobs? The only thing I see new is something like ANOTHER cell phone store which hires 4 people. A tiny restaurant that hires family and friends and feeds family and friends till they raise the rent and they close down.

Originally Posted by crazybird

...And OBL idiots want to bring more people into the country to do what exactly???

Really? What jobs? The only thing I see new is something like ANOTHER cell phone store which hires 4 people. A tiny restaurant that hires family and friends and feeds family and friends till they raise the rent and they close down.

Yep. Exactly my point crazybird.

How about instead we take care of the 8-9 million* Americans looking for jobs (of the type that can sustain a person, or, even a family) .... now???

*Actual number is approximately 2x the level reported by BLS/DoL; due to traditional bias toward under-counting 'discouraged workers' (eg. those not having a job, not having a FT job-but working PT job, and those no longer registered with local employment offices officially 'looking', etc)