Unemployment rate rises

In May, employers only added 69,000 jobs, the fewest in a year, as payroll gains were "disappointingly tepid" for a third month.

LOS ANGELES, CA (Catholic Online) - The national unemployment rate rose from 8.1% to 8.2% with roughly 642,000 Americans rushed into the labor force, many could not find jobs. Businesses and corporations added 82,000 jobs, with the government cutting 13,000. However, the price of gold, which traded at about $1,550 an ounce increased by $40. During the past three years, investors have seen gold be a safe option to put their money during troubled economic times.

It is estimated that employers added 150,000 jobs last months, including 160,000 in the private sector. The government, however, brought down total job gains for the past two months by about 49,000. March's gains were revised from 154,000 to 143,000, and April's from 115,000 to 77,000.

"The jobs recovery has taken a step backward," says Patrick O'Keefe, director of economics at J.H. Cohn accounting and consulting and former deputy assistant secretary for the Labor Department.

The May employment report could be a major factor in determining President Obama's reelection chances due to voters' idea of economy wanting to solidify during the summer. Chief economist of Mizuho Securities, Steven Ricchiuto, stated that the disappointing report will increase assumptions that the Federal Reserve may be buying more Treasury bonds in order to lower long-term interest rates, while stimulating the economy.

The monthly job growth showed to average 252,000 from December throughout February, raising the hopes of many that the job market was finally getting on its feet. However, during the past three months, job gains have slowed to 96,000. Many worry that the economy and job market may be affected by the European financial crisis and the dying housing market. Ben Bernanke, Federal Reserve Chairman, suggested that job growth increased early this year due to employers making up for excessive layoffs, however payroll gains will slow without a stronger economic growth.

"The disappointing jobs report really underscores that the giveback we've seen (in job growth) is more than just a weather-related event," says Diane Swonk, chief economist of Mesirow Financial.

According to Swonk, the average monthly job gains should pick up, but only to about 150,000 to 170,000 for the rest of the year.

However Joel Naroff, of Naroff Economic Advisors, stated that the job market fell into a similar downfall backing 2011, and we got out of it. He expects the job growth to experience a 200,000 pace later this year.

The underemployment rate, which includes job-seekers who stopped looking for work, part-time workers who prefer full time jobs, and the unemployed, rose from 14.5% to 14.8%. The number of Americans with no job for at least six months rose 5.4 million.

Health care and education sectors gained 46,000 jobs, manufacturers added 12,000, and retailers added 2,300. Construction, however, cut 28,000 jobs, and the leisure and hospitality industry cut 9,000 jobs.

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