Posted on 05/04/2012 10:56:11 AM PDT by Red Steel
WASHINGTON, May 4 (Reuters) - U.S. employers cut back on hiring in April and more people stopped looking for work, dimming hopes the economy was turning a corner just as President Barack Obama steps up his re-election campaign.
Employers added 115,000 workers to their payrolls last month, the Labor Department said on Friday. That was well below economists' expectations.
The unemployment rate ticked down by a tenth of a point to a three-year low of 8.1 percent, but only because a drop in the number of people hunting for jobs shrank the labor force.
It was the third straight month in which hiring slowed, intensifying fears that the U.S. recovery is losing momentum and opening the door a bit wider for the Federal Reserve to ease monetary policy.
"The bottom line is you don't have evidence that this economy has reached escape velocity," said Robert Tipp, an investment strategist at Prudential Fixed Income.
Although economists had expected non-farm employment to rise by 170,000 jobs last month, the report was not all negative. The government revised upward earlier estimates for payroll growth in February and March by a combined 53,000.
U.S. stocks fell and yields on U.S. government bonds declined as investors saw a greater probability the Fed would step up efforts to boost the economy.
POLITICAL ECONOMY
The report could rattle nerves at the White House. Weak U.S. growth and high unemployment create a formidable headwind for Obama, who entered office during the darkest days of the 2007-09 recession.
Obama, who will hold his first campaign rallies on Saturday, said he would urge Congress next week to implement "common sense ideas" to accelerate job growth.
"We've got to do more if we're going to recover all the jobs lost in the recession,"
(Excerpt) Read more at reuters.com ...
No $hit, Sherlock!
It’s all the 20 somethings keeping their jobs at McDonalds. McDonalds will need to come up with a “20 year” burger flipper pin if this keeps up.
Back to that age old question, what recovery?
I hope Boehner and Co. have the sense and presence of mind to cite the raft of "jobs bills" passed by the Congress the last year and left derelict in the Democrat Senate.
Boehner and McCain are wimps when it comes to discussing Obama and his destructive policies. At least Romney is sounding off.
Funny how the term “McJobs” hasn’t been seen in the MSM since Jan 2009.....
Not to worry, I’m sure the new algae-to-fuel thing will really create more jobs. Obama said so.
/sarc
Not to worry, I’m sure the new algae-to-fuel thing will really create more jobs. Obama said so.
/sarc
Sounds like Hitler’s delusional reference of super weapons saving Nazi germany during his last days in the Fuherbunker.
Conservative business owners should avoid hiring at all costs until Nov. although it’s unlikely to make any difference given there are only 2 liberals running. The worse it is the more likely the current regime is overthrown.
Recovery Summer II. Goebbels would be proud.
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