May jobs report: Hiring slows, unemployment rises
Tami Luhby, CNNMoney
NEW YORK (CNNMoney) – Businesses hired far fewer workers than expected in May, throwing into doubt the strength of the economic recovery.
The unemployment rate rose to 8.2%, as people rejoined the labor force.
Economists surveyed by CNNMoney had expected to see employers add 150,000 jobs and the unemployment rate to remain at 8.1%.
Revisions from previous months also showed the economy gained fewer jobs in March and April than originally thought. March’s numbers were lowered by 11,000 jobs, while April’s plummeted by 38,000.
Economists lay the blame for the slow growth at the feet of Europe and Washington D.C. The steady drumbeat of headlines concerning Europe’ financial woes, as well as the looming fiscal cliff in the U.S., is weighing on consumer confidence. Adding to the problems is the slowdown in the Chinese economy.
Roughly 12.7 million Americans remain unemployed, and 42.8% of them have been so for six months or more.