US Jobs Rate Likely to Show Drop in Hiring

Posted June 3rd, 2011 at 7:35 am (UTC-5)
Leave a comment

Economists are predicting the U.S. Labor Department will issue a report Friday showing anemic job growth during May.

The forecasts vary on how many Americans were hired last month, with many economists settling on just over 160,000 jobs created – a sharp decline from the 244,000 increase reported in April. The U.S. unemployment rate will likely fall just a fraction from its current 9.0 percent rate.

Economists say at least 200,000 jobs need to be created each month to bring the jobless rate back down to pre-recession levels.

The dire employment forecast for May comes after a number of recent reports suggesting the economic recovery has stalled. The number of people applying for jobless benefits remains high, while a firm that handles U.S. payrolls reported last this week that private employers added only 38,000 jobs.

Soaring prices for oil and food have led to a decline in consumer spending, which has been a key factor in the current economic stagnation.