Summary Box: Hiring drops, unemployment rises

AP News
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Posted: Jun 03, 2011 5:06 PM
Summary Box: Hiring drops, unemployment rises

HIRING FALLS: Employers added 54,000 net new jobs in May, the fewest in eight months, and the unemployment rate rose to 9.1 percent. The bleak jobs report suggests the economy will remain weak for months. Employers added an average of 220,000 per month in the previous three months.

TEMPORARY FACTORS: Economists blamed mostly temporary factors, such as the spike in oil prices earlier this year and supply disruptions from Japan's earthquake.

SLOWING MOMENTUM: But most analysts don't expect a strong rebound later this year. With job growth slowing, home prices falling, and wages stagnant, the unemployment rate will likely remain high through next year.