Money Matters - Simplified

US Jobless rate hits 9.1% in May

Employers added only 54,000 new jobs in May, the fewest in eight months, and much below the analyst’s expectation of 232,000 positions.

Latest data on unemployment has raised fears that recovery in the U.S job market may have already peaked.

Only 54,000 jobs were added in May, the smallest increase in eight months. The additions look minimal when compared to the 232,000 positions that analysts estimated the nation would add.

The unemployment rate also did not present a rosy picture, as it climbed up to 9.1 percent. In terms of absolute numbers it means that close to 14 million Americans are still hunting for a means to livelihood.

The White House has however downplayed the lower job numbers. The Obama administration has exuded confidence that the nation is well on the road to recovery, and the May data is just an aberration.

The nation needs to add 125,000 new jobs every month to keep pace with the growth in population and stabilize unemployment rate.

Data from the Labor Department revealed that local governments lost as many as 28,000 positions in May.

Nearly 5,000 jobs were slashed by the manufacturers. The retailers slashed close to 8,000 positions. The payrolls in the service and hospitality sector were cut by 6,000 positions.

President Obama confident
The White House has however downplayed the lower job numbers. The Obama administration has exuded confidence that the nation is well on the road to recovery, and the May data is just an aberration.

President Barack Obama, on his tour to a Chrysler car plant in Ohio, claimed that his government saved more than a million jobs by bailing out the Detroit auto majors.

“All three automakers are now adding shifts and creating jobs at the strongest rate since the 1990s,” the president said of the Detroit’s big 3; Fort, Chrysler and General Motors.

But the Republican House Speaker John Boehner is not happy.

“One look at the jobs report should be enough to show that the White House should get serious about cutting spending,” Boehner was quoted as saying in The Seattle Times.

“You talk to job creators around the country like we have, they'll tell you that the over taxing, over regulating and overspending that's going on here in Washington is creating uncertainty and holding them back,” he added.