United States: Unemployment unexpectedly rises in May
June 3, 2011
In May, the economy added 54,000 jobs, after a revised increase of 232,000 jobs in April (previously reported: 244,000). The print surprised the market on the downside, as analysts expected nonfarm payrolls to increase by 165,000. Owing to the weak reading, the unemployment rate rose for the first time in four months, inching up to 9.1% in May (April: 9.0%). Private sector hiring was entirely responsible for job creation, as it added 83,000 jobs which, nonetheless, were well below expectations of 170,000 new jobs. In contrast, the public sector continued cut payrolls by shedding 29,000 jobs, mostly at the state and local level. The economy lost an accumulated 7.4 million jobs between December 2007 ? the official start of the recession ? and its official end in June 2009. The tentative economic recovery observed since then has seen just 0.6 million new jobs, indicating that conditions in the labour market remain weak.