US non-farm payrolls come in far weaker than expected -UPDATE

Date: Friday 01 Jun 2012

Non-farm payrolls in the United States grew by 69,000 during the month of May, according to data just released by the Bureau of Labour Statistics (BLS).

That when the consensus estimate had been for an increase of 150,000.

Furthermore, the previous two months’ tally was revised down by a combined 49,000.

As well, the unemployment rate rose by one tenth of a percentage point, to 8.2% (Consensus: 8.1%), from 8.1% in the month before. Nonetheless, the participation rate, which indicates the share of working-age people in the labor force, rose to 63.8% from 63.6%.

The length of the average work-week fell to 34.4 hours, from last month’s 34.5.

Average hourly earnings increased by a tenth of a percentage point, to show a 1.7% year-on-year gain.

Economists at Barclays Capital are saying that, “the May employment report suggests that the labor market recovery has lost significant steam in recent months. In our view, this raises the likelihood that the Fed will embark on a renewed round of policy easing, although market developments and the tone of other economic data in the coming weeks remain important. The focus will be on Fed Chairman Bernanke when he testifies to a Congress Committee next Thursday for hints of whether today's report might prove decisive in the FOMC's deliberations.”

AB

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