Friday, June 01, 2012

May Unemployment Inches Up, Weak Hiring, Stock Futures Go Down

All the phony numbers from the past few months won't help Obama now (Bloomberg).

American employers in May added the fewest workers in a year and the unemployment rate unexpectedly increased as job-seekers re-entered the workforce, further evidence that the labor-market recovery is stalling.

Payrolls climbed by 69,000 last month, less than the most- pessimistic forecast in a Bloomberg News survey, after a revised 77,000 gain in April that was smaller than initially estimated, Labor Department figures showed today in Washington. The median estimate called for a 150,000 May advance. The jobless rate rose to 8.2 percent from 8.1 percent, while hours worked declined.

As for the stock futures....

U.S. stock futures fell, after the worst monthly drop in the Standard & Poor’s 500 Index since September, as employers added the smallest number of workers in a year, the unemployment rate increased and manufacturing output shrank in Europe and slowed in China.

....S&P 500 futures expiring in June lost 2 percent to 1,282.90 at 8:50 a.m. New York time. Dow Jones Industrial Average futures slid 197 points, or 1.6 percent, to 12,186.

“Yuck, this is really not good,” said Michael Mullaney, who helps manage $9.5 billion as chief investment officer at Fiduciary Trust in Boston. He spoke in a phone interview.“The overall jobs report is bad. We’ve got weak economic figures on a worldwide basis. We’re at a very precarious point right now as far as investors’ psyche is concerned.”

Mitt Romney is quoted by CNN on this economic news "the President's re-election slogan may be ‘forward,’ but it seems like we've been moving backward."

Meanwhile, while more Americans are out of work, Richard Milhous Obama is hitting the fundraising trail, attending six today, including one where weatlhy donors are paying $50,000 (yes, you read that right) per ticket to attend.

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