The American job market weakened
again last month as employers shed 49,000 jobs, the government
said on Friday, further darkening the outlook for workers as
they try to cope with the housing slump and high oil prices that
cut into their spending power.The unemployment rate surged to
5.5 percent from 5 percent in April, far higher than economists
had expected.
Payrolls have shrank every month this year, the worst losing
streak since 2003, according to the Bureau of Labor Statistics.
Manufacturers, construction companies, and goods-producing
businesses were the hardest hit, as the collapse of the housing
market left several industries reeling and facing an imperative
to cut costs.
The government also revised down its estimate for April to a
loss of 28,000 jobs. It had originally reported that 20,000 jobs
were lost that month.
A weak labor market can leave many Americans concerned about
their future and less eager to make large-scale purchases. Many
will have little room to maneuver if they lose their jobs, as
home values decline and equity lines are maxed out.
Americans’ salaries continued to shrink when adjusted for
inflation. Workers’ wages grew in May but at an anemic pace,
with the average weekly salary for rank-and-file employees
rising just 0.3 percent, to $604.58. (Inflation is running at
about 4 percent a year.)
The average number of hours held steady at 33.7 hours.
