June 1 - Hopes of an American rescue of the global economy were dashed with a report showing the weakest U.S. job growth in a year, shocking Wall Street. Conway G. Gittens reports.
U.S. employers slam on the brakes in the strongest sign a recovery is fading fast. It is the weakest payroll gain in a year. Only 69,000 new jobs were added in May - with numbers for the two months before that revised sharply lower. Economists are pointing to the economic woes in Europe and a slowdown in China for shaking confidence in U.S. ability to withstand those global shocks. Jim Bianco of Bianco Research: SOUNDBITE: JIM BIANCO, PRESIDENT, BIANCO RESEARCH (ENGLISH) SAYING: "But what they seem to be missing is that there is a protracted slowdown in the economy and it's unmistakable right now, especially with the downward revisions that we saw in the previous numbers, and that they are all going to have to go back and rework their assumptions about a potentially slowdown in the economy coming for the third summer in a row now, as we've seen before." Uncertainties ahead of this fall's U.S. Presidential election are another reason cited for the slowdown in hiring. Despite weak numbers in recent months, more Americans decided it was time to look for work again - pushing the unemployment rate up to 8.2 percent. The disappointing job numbers are adding concerns to global markets already rocked by growing signs of weakness around the world, setting Wall Street up for another brutal fall and U.S. treasury yields to unseen lows. Conway Gittens, Reuters