June 1st 2012 CNBC Stock Market Squawk Box (May Jobs Report)
6/1/2012 - CNBC Stock Market Squawk Box (May Jobs Report). The May employment report shows the economy slowing sharply. The unemployment rate rose to 8.2 percent in May from 8.1 percent the prior month. Payroll jobs in May rose only 69000, following increases of 77000 in April (originally 115000) and 143000 in March (prior estimate up 154000). The net revisions for March and April were down 49000. Analysts expected a 150000 boost for May. Private payrolls gained 82000 in April after an 87000 advance the prior month. The consensus forecast was for a 164000 increase. Goods-producing industry employment fell 15000 after a 4000 rise in April. For the latest month, manufacturing increased 12000; construction fell 28000; and mining edged up 1000. Private service-providing industry employment rose 97000, following an 83000 increase in April. The public sector continued to shrink with a 13000 drop in government employment. Average hourly earnings edged up 0.1 percent, matching the pace in April. Expectations were for a 0.2 percent gain. The average workweek slipped to 34.4 hours from 34.5 in April. Analysts called for 34.5 hours for May. Today's employment report is extremely disappointing. Businesses have brought hiring to a near halt even as demand is moderately healthy according to PCE spending and auto sales. On the news, equity futures declined notably.
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