Forum Views ()
Forum Replies ()
Read more with google mobile :
US employment report sparks global recovery fears
Yahoo!
My Yahoo!
Mail
More Yahoo! Services
Account Options
New User? Sign Up
Sign In
Help
Yahoo! Search
web search
Home
Singapore
Asia Pacific
World
Business
Entertainment
Sports
Technology
Top Stories
Most Popular
Photos
Sitemap
US employment report sparks global recovery fears
AFP - Saturday, June 5
Send
IM Story
Print
WASHINGTON (AFP) - – A weaker-than-expected report on US job creation has shown employers are still reluctant to hire new workers, and has heightened fears of a faltering economic recovery.
In figures that fell well short of expectations -- sending markets across the world plummeting -- the Labor Department said 431,000 posts were created in May, most of them temporary government jobs for this year's census.
Private-sector jobs rose by just 41,000, less than a fifth of the amount predicted by analysts. Much of that gain came from temporary service-sector jobs.
President Barack Obama's hopes of slashing US unemployment had been expected to get a substantial boost, amid predictions that 500,000 or more jobs would be created.
But Obama shrugged off the report, saying a slight drop in the unemployment rate showed the economy was getting stronger.
The US unemployment rate dipped to 9.7 percent from April's 9.9 percent, as around 322,000 people stopped looking for work.
"This report is a sign that our economy is getting stronger by the day," Obama told a crowd gathered at a truck dealership in suburban Maryland.
"There are going to be some months where people start worrying that, you know, maybe we're not out of the hole yet.
"But if we remain determined, if we stick to it, if we stay the course of investing in our people and businesses... then I'm absolutely positive we can succeed."
But his comments did little to shake fears of a jobless recovery.
"There is no sugarcoating this report as it was disappointing," said Joel Naroff of Naroff Economic Advisors. "Forget the headline number, the private sector is not out there hiring like crazy."
That response was echoed on Wall Street where the Dow Jones Industrial Average fell 325 points -- or more than three percent -- shortly before the closing bell.
The picture was equally bleak in Europe. London's FTSE 100 index shed 1.6 percent while in Paris the CAC 40 fell 2.9 percent and in Frankfurt the DAX lost 1.9 percent.
Analysts said the skittishness was caused by fears that the private sector will not be able to prop up the economy as the government gradually withdraws stimulus spending.
"The softer performance in US private-sector payrolls... raises concern that the recovery is faltering," Stephen Gallagher and Aneta Markowska of Societe Generale said in a note to clients.
That would spell bad news for the nearly one in 10 American workers who are unemployed and continue to stream into government offices asking for help.
The Labor Department says almost 4.7 million Americans now claim unemployment benefits, with 453,000 new claims in the last week of May alone.
Instead of rehiring staff many firms are asking workers to put in longer hours or are creating only part-time jobs, according to data also released Friday.
The Labor Department said the average workweek has increased by around 20 minutes from a year ago to just over 34 hours.
But some analysts said the employment figures are not yet cause for panic.
"In our view, it would be premature to conclude that the recovery is stalling or even giving way to a renewed recession," said Jan Hatzius of Goldman Sachs.
"Employment is growing, but so far it is only growing at a 100,000 to 150,000 pace. This is sufficient to keep the unemployment rate stable and absorb most of the new entrants into the labor force, but it is nowhere near the 300,000+ pace which would be required to push the unemployment rate down rapidly."
Recommend
Send
IM Story
Print
News Search
Top Stories
Aid ship intercepted by Israeli troops: Gaza committee
US employment report sparks global recovery fears
Nadal calls truce with title rival Soderling
Dow hits four-month low on weak jobs report
US stocks plunge, Dow down over 3.0 percent
More Top Stories »
ADVERTISEMENT
Most Popular
Most Viewed
Most Recommended
Cricket sex video reveals wild mating behavior
McDonald's recalls 12 mln tainted 'Shrek' glasses
Russia finds 10,000 bombs on sunken German ship
'Mars crew' locked up for 520 days of isolation
US employment report sparks global recovery fears
More Most Viewed »
Hubble catches planet being devoured by its star
The point about pain: New study sheds light on acupuncture
Ocean fish could disappear in 40 years: UN
Paris museum burglar grabs 120-million-dollar art haul
US team creates first 'synthetic life'
More Most Recommended »
Elsewhere on Yahoo!
Financial news on Yahoo! Finance
Stars and latest movies
Best travel destinations
More on Yahoo! News
Home
Singapore
Asia Pacific
World
Business
Entertainment
Sports
Technology
Subscribe to our news feeds
Top StoriesMy Yahoo!RSS
» More news feeds | What are news feeds?
Also on Yahoo
Answers
Groups
Mail
Messenger
Mobile
Travel
Finance
Movies
Sports
Games
» All Yahoo! Services
Site Highlights
Singapore
Full Coverage
Most Popular
Asia Entertainment
Photos
World Cup 2010
Copyright © 2010 Yahoo! Southeast Asia Pte. Ltd. (Co. Reg. No. 199700735D). All Rights Reserved.
Terms of Service |
Privacy Policy |
Community |
Intellectual Property Rights Policy |
Help
Other News on Saturday, 5 June 2010 Ukraine disappoints Russia on Georgia rebel regions
US firm launches rocket on test flight
Afghan conference calls for talks with militants
Myanmar seeking to develop nuclear weapons: report
|
Estonia keen to host EU's future IT agency: minister
Hungary raises specter of Greece
|
G20 'reassured' by stabilisation plans: Lagarde
Defiant activist ship steams on towards Gaza
GlobalEnglish an Internet coach for language of business
Low IQ increases men's suicide risk: study
McDonald's recalls 12 mln tainted 'Shrek' glasses
Lead poisoning from mining kills 163 in Nigeria
|
BP Cautiously Optimistic As It Siphons Oil Through Containment Cap
Facebook vandal denied bail after death threats
Pope calls for 'desire for harmony' in divided Cyprus
Oil Blobs Floating Onto Pensacola Beach
Qaeda in Iraq struggling after leadership blow: U.S.
|
Wal-Mart Announces $15 Billion Share Buyback Program
Twitter touted as major force behind opposition victory
Disney Orders 4th Season Of "Wizards Of Waverly Place" And Film Sequel
Open source Linux wins Quebec court case against Microsoft
McDonald's Voluntarily Recalls 12 Million Shrek Glasses Over Cadmium Concerns
Chile begins to expel Dutch murder suspect to Peru
|
US Cyber Command chief warns of 'remote sabotage'
Kurds say small unit of Iranian troops enters Iraq
|
Deng dipper consigns France to defeat
SKorea formally asks UN to respond to ship sinking
Hackers plant viruses in Windows smartphone games
|
AOL shares up on Microsoft bid target talk
|
Baseball seeks halt to porn, indecency on MLB.com
|
Robert Redford attacks big oil, politics on spill
|
Trash-coated 'hotel' set up in Rome
Ferran Adria to open new eatery in Barcelona
At China's World Expo, a muted approach to democracy
World Cup wines blur South African colour line
Tokyo screenings of dolphin film cancelled after threats
Japanese conductor Ozawa cancels more events
Wenders hails 3D as 'ideal tool' for documentaries
Iraqi cinemas struggle to restore former glory
European nations seal divorce law pact
Kristen Stewart calls rape remark enormous mistake
|
Justin Bieber wins fans by working like an old pro
|
Robert Redford attacks big oil, politics on spill
|
Foreign troop death toll in Afghanistan hits 230
Flotilla raid goes viral as Israel floods YouTube
Dutch murder suspect handed over to Peru police: AFP
Israel shadows new Gaza-bound ship: activists
|
Afghan conference calls for talks with Taliban
Google to give private Wi-Fi data to European regulators: FT
Aid ship intercepted by Israeli troops: Gaza committee
U.S. says weighing new options over North Korea
|
US employment report sparks global recovery fears
Nadal calls truce with title rival Soderling
Autopsy shows Gaza activists were hit 30 times: report
|
Private US firm launches rocket on test flight
Dow hits four-month low on weak jobs report
US stocks plunge, Dow down over 3.0 percent
Hungary debt fears gnaw at euro
|
Privately Developed Rocket Launched From Cape Canaveral Air Force Station
Tea Party Candidate Surges Ahead In Nevada Senate Race
Japan PM-elect picks Noda for fin minister: report
|
White House Denies Improper Influence in Primary Elections
MasterCard Launches MoneySend Service For iPhone
U.N. to send extra police to post-quake Haiti
|
U.S. Markets Tumble On Employment Data
Teen breaks Cleveland drought, wins Spelling Bee
Reforms help states cut foster-care populations
Minimum and maximum temperatures in Celsius
US defense chief accuses NKorea of recklessness
Press laments Japan's football team after loss to I.Coast
Japan's new PM scrambles to form cabinet
China exults in shock defeat of France
Bangladesh mourns dead in deadliest fire
Manny Pacquiao named Fighter of the Year
Delhi's 'tongas' forced to ride into the sunset
India pledges to engage Pakistan despite concerns
Verizon may be alone in following AT&T rate change
|
New Zealand says no to Rocky Horror's Riff Raff
G20 set to disagree on banking reform
Hackers plant viruses in Windows smartphone games
|
S.Korean firms sign deal on Argentine lithium project
Honda says Chinese labor dispute has been settled
G-20 finance chiefs mull deficits, banking rules
China to review plans for Agricultural Bank's IPO
Laurie Anderson performs Opera House dog concert
US mixed marriages hit record high: study
Lil Jon returns with new energy, new album
|
Dolphin hunt film screenings cancelled in Tokyo
|
Michael Franti channels health scare into Sunshine
|
Chace Crawford busted for pot possession
|
Album sales plummet to lowest total in decades
|
Charlie Sheen faces a most uncommon jail in Aspen
|
Medvedev hopes 'irresponsible' Iran listening
Medvedev urges global eco-disaster fund
British troops have to stay in Afghanistan: Fox
Militancy-hit Pakistan ups defense spending by 17 percent
|
Bomb at Afghan governor office kills 1, wounds 14
Bomb outside Afghan governor's office wounds 6
G20 warns of major challenges to global recovery
Japan ruling party support leaps on new leader: poll
|
Berlin, Moscow eye quick U.N. move on Iran sanctions
|
Obama: We'll Make Sure BP Pays "Every Single Dime"
Vice President Biden Will Head To Africa
Barenaked Ladies Guest Star In "Bachelorette" Episode
Gunmen kill politician of winning Iraqi bloc
|
BBC America To Bring British Kitchen Culture To USA In "Come Dine With Me"
Greek austerity protest sees low turnout in rain
|
Cyprus tells Pope split threatens heritage
|
South Africa's Zuma faces another family scandal
|
US demands gloabl action against North Korea
Protests in Taiwan against China trade pact
Hong Kong scientists identify cancer stem cells
Arms to Taiwan no reason to suspend US-China ties: Gates
Petronas to focus on Malaysian oil fields: report
Trio abducted by Islamists found dead in Philippines
Aussie dogs go barking mad for a little mutt music
Geithner urges China to resume exchange rate reform
G20 says world economy recovering faster than expected
G-20 finance chiefs agree on need to curb deficits
G-20 agrees to advance reforms, rebalance growth
G-20 finance chiefs mull deficits, banking rules
Moscow "Launches" Crew To Mars In Simulated Mission
Cuba singer Rodriguez wistful and polemical in U.S. show
|
Greece at new risk of being pushed off euro
Bodies of missing Tenn. mom, Jo Ann Bain, and daughter found
Female Breasts Are Bigger Than Ever
AMD Trinity Accelerated Processing Units Now in Volume Production
The Avengers (2012 film), made the second biggest opening- and single-day gross of all-time
AMD to Start Production of piledriver
Ivy Bridge Quad-Core, Four-Thread Desktop CPUs
Islamists Protest Lady Gaga's Concert in Indonesia
Japan Successfully Broadcasts an 8K Signal Over the Air
ECB boosts loans to 1 trillion Euro to stop credit crunch
Egypt : Mohammed Morsi won with 52 percent
What do you call 100,000 Frenchmen with their hands up
AMD Launches AMD Embedded R-Series APU Platform
Fed Should not Ignore Emerging Market Crisis
Fed casts shadow over India, emerging markets
Why are Chinese tourists so rude? A few insights