WASHINGTON - Pink slips piled up and jobs disappeared into thin air in May as the nation's unemployment rate zoomed to 5.5 percent in the biggest one-month jump in decades. Wall Street swooned, and the White House said President Bush was considering new proposals to revive the economy.
Help-wanted signs are vanishing along with jobs, so the unemployment rate is likely to keep climbing, a government report indicated, underscoring the toll the housing and credit crises are taking on jobseekers, employers and the economy as a whole.
Adding to the pain, oil prices soared to a new record high, while the value of the dollar fell.
The Dow Jones industrials tumbled almost 400 points.
The White House snapped into crisis-management mode. The president is now considering further plans to help energize the economy, which had already been teetering on the edge of recession, said counselor Ed Gillespie. Bush acknowledged, "This is a time of turbulence in the housing market and slow growth for our overall economy."
Pounded by soaring energy prices and plagued by uncertainty, nervous employers clamped down further on hiring in May.
Friday's Labor Department report was filled with sobering numbers:
• Employers eliminated 49,000 jobs in May, the fifth straight month of nationwide losses.
• The number of unemployed people grew by 861,000 — to 8.5 million.
• Job losses for the year reached 324,000.
Longer unemployment lines mean even more angst for those seeking work.
Barbara Bowens, 52, of Washington, D.C., has been laid off from a janitorial job since March. The prospects of finding a new job "don't look so good," she said. "I can't pay bills off nothing." Collecting unemployment benefits helps, but "I've got to pinch pennies."
Cheryl Williams, who lives in the Tulsa, Okla., suburb of Broken Arrow, has been looking for work for two years after losing her job as a certified nurse's aide. The 37-year-old relies on $225 a month in welfare and odds-and-ends jobs to support her two kids.
"I have job searched and job searched and job searched," Williams said. "I would like to have a real job."
Just in the past several days General Motors Corp., United Airlines and others have joined the flurry of job-cut announcements.
The unemployment rate shot up from 5 percent in April, reflecting more workers losing their jobs as well as an influx of young people looking for work. It was the biggest over-the-month swing in the rate since February 1986. The increase left the jobless rate at its highest since October 2004.
The unemployment rate for blacks climbed to 9.7 percent, the highest since late 2005. The rate for teenagers rose to 18.7 percent, the highest in five years. The rate for Hispanics held steady at 6.9 percent.
Economists believe the 5.5 percent nationwide unemployment rate may overstate the weakness in the job market. But they still say it's heading higher. Some predict it will hit 6 percent or higher early next year.
"Employers are uncertain about where the economy is going, so they are more cautious than they would normally be in pulling the hiring trigger," said Tig Gilliam, chief executive officer of Adecco North America, a placement and recruiting firm.
Both employers and workers, he said, are now inclined to look locally. The housing bust has made it difficult for people to sell their homes and relocate for new jobs. And galloping gas prices are making some jobseekers draw a line on commuting longer distances.
Drivers are now paying an average of $3.99 for a gallon of regular gas nationwide, according to AAA and the Oil Price Information Service; in many parts of the country, the price is already well over $4. Oil prices had been easing but surged higher on Friday, climbing above $139 a barrel at one point.
The 5.5 percent jobless rate is actually moderate by historical standards. Yet, there were harsh cuts last month as employers reduced jobs in manufacturing, construction, retailing and professional and businesses services. Those losses swamped gains elsewhere, including in the education and health fields, government, and leisure and hospitality, according to Friday's Labor Department report.
The jump in unemployment reflected more workers losing their jobs as well as an increase in those coming into the job market — especially younger people — to look for work, Labor's Bureau of Labor Statistics said.
A year ago, the number of unemployed stood at 6.9 million and the jobless rate was 4.5 percent.
The country's economic problems are a top concern for voters — and thus for Bush, lawmakers on Capitol Hill and candidates vying to win the White House this fall.
Barack Obama, the likely Democratic nominee, called the employment figures "deeply troubling," while Republican rival John McCain said they were a "stark reminder of the economic challenges facing American families." Both candidates pledged to turn around the economy.
Bush said the employment snapshot was "clearly a sign that is consistent with slow economic growth.
Employers — and the public — have been shaken by lots of talk about whether the economy is on the brink of or has fallen into its first recession since 2001. That determination, made by a panel of academics, is usually made well after the fact.
"For the average American there is not debate that the economy is in a recession," said Mark Zandi, chief economist at Moody's Economy.com. "That's because their net worth is lower, their purchasing power is lower and it is tough to find a job. If you lose a job, it is tough to get back in," he said.
Workers with jobs did see modest gains in May.
Average hourly earnings rose to $17.94, up 0.3 percent from April. Over the past 12 months, wages have grown by 3.5 percent.
Still, with lofty food and energy prices, paychecks aren't stretching as far. Although tax rebates helped to energize shoppers and give retailers better sales in May, the weakening job market could make people feel less inclined to spend, which would put a damper on overall economic growth.
___
Associated Press writers Christine Simmons in Washington and Justin Juozapavicius in Tulsa contributed to this report.
Well doc , good points you make again ! I do love to debate with you on some differences , and totaly agree with you on others .
For 1 , noone is looking to hire in the near future Biggest jobless jump since '86 — Wall Street sinks - Yahoo! News
Ben Bernanki also said back in Jan. that things were going to get better too .
We are losing more jobs now than we have for a very long time , and Buisnesses are not looking to expand in this market now because of too many unknown factors .
If they are looking to hire in the next quarter , I'd be really shocked .[/quote]
I'm thinking it was in the fourth quarter. I read it in Stars and Stripes a few days back, but didn't save it because I hadn't anticipated this discussion.
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I was a die hard Republican for many years , that is until they turned thier back on the conservative poloicies , and moral values they once had .
I helped them to get where they are by voting the ticket for many years , I now have regrets because they are not fiscally responsible , goverment is growing by leaps and bounds .They have no answer for where it all went wrong , they just keep saying give us another chance . Well I've given enough to them , now it's time to take away some of thier powers by voting for a change.
I really think if the Republicans lose the White House this year , it will be thier wake - up call to go back to thier roots . Under the republicans the Budgets have been incredibly high and full of Pork as well , but they passed them all during Bush's first term and he never once threatened a veto .
I've really had it with them all to be honest .
I consider myself a libertarian, with a small L, not a party member. I tend to vote Republican simply because the Libertarian party has little real hope of doing much. I'm of the opinion that at this point in time we can't afford to do anything just to teach the Republicans a lesson, particularly at the Presidential level.
As I said before, change for change's sake is not necessarily a good thing, and can get you into more trouble than you were already in. I want nothing more than for me and all the rest troops to be out of here. However, I don't want to do it at the expense of having to fight a strengthened, more confident foe down the road or more large scale terrorist attacks.
I believe that we are better able to predict future performance of a person by their past history than their party affiliation. Looking at strictly a professional level, I see McCain as a known candidate. The conservatives truly don't care for him, they just see him as the lesser of two evils. I sometimes wonder if the acronym "RINO" (Republican In Name Only) was coined for him by the far right. He has continually worked to get pork out spending out of Washington, has continually crossed the aisle and worked with Democrats, and generally been a consistent force within Washington. Other than his two autobiographies, I can't tell you off the top of my head what Obama has done, other than serve on the Harvard Law Review.
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Thanks for your time in posting Doc , I have enjoyed these dicussions and pray that you come home safely .
Thanks, and I have enjoyed them as well. If I track down that statement by Bernanki, I will post it. My memory has been known to be fallible, so it is possible I didn't recall what I had read.
__________________ Courage is being scared to death… and saddling up anyway - John Wayne.
Nothing will bring down prices today except a tipping point in perception. Getting off our asses and doing something to increase out petroleum supplies would be an improvement. Letting Cuba drill the Gulf is about par for the course. Any speculation in petroleum markets is justified by our record of ignorance in defining a cogent energy policy. And now our U.S presidential candidates Obama and McCain are talking about it, the issues surrounding recent discussions on US offshore drilling for oil has significant impact for all Americans. US Offshore Oil Drilling- McCain vs. Obama
Obama,,,nope no way. A few quote from his book to qualify my position.
From 'The Audacity Of Hope, "I will stand with the Muslims should the political winds shift in an ugly direction."
This beautiful 9/11 tribute site should be required viewing yearly for every American...least we forget: America Attacked 9 1 1
He says... least we forget. Least we forget...like it was a lesson we were taught. This is a multi generational battle we are in. Barack Hussein Obama has no future as the President of our great nation.
Drive your Tundra at 60 mph, I bought mine last Saturday and it gets 21mpg highway 18mpg city, 5.7, 4x4 crewmax. If everybody would cool it some the oil industry would choke of the surplus and we could go back to around $2.50 a gallon, can't believe I just said go back to $2.50 a gallon.
McCain.....i wanna drill more holes in the ground. Then find an alternative fuel source!! But right now i wanna enjoy my Tundra without 10 bucks to a gallon!!
Mods:
Tinted Windows
Hurst Shifter
Kobalt Narrow Over Rail Tool Box
Under Seat Storage Box
Toyota Bed Mat
HD Trailer Brake Conroller
G-Tek Door Sill Protectors
they will never drill the "preserved parks" and not because of tree huggin reasons either. those preserves are incase of an Armageddon type scenario. if all the super powers nuke each-other to shit, those preserves are what will keep the country running. McCain is just trying to gain popularity by acting like he's for drilling the preserves. Its a small attempt at trying to make people think he cares about Americans. It will never happen. EVER. Unless the whole world goes to shit. Emergencies only.
no matter what we vote, the electoral college picks who they want.
don't forget that Gore won the popular vote, but the "college" picked BUSH.
what a swell decision that turned out to be.
What i wanna know is...who the hell are these electorates?
If they get to pick the president, then it is my firm belief that WE should elect THEM. Thats the only way the people's choice will ever become elected.
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