sunny.png
Monday August 19th, 2019 3:18PM

US employers add just 75,000 jobs as unemployment stays 3.6%

By The Associated Press
Related Articles
  Contact Editor

WASHINGTON (AP) — U.S. hiring slowed in May as employers added just 75,000 jobs, a sign that businesses have become more cautious in the face of slowing global growth and widening trade conflicts.

The tepid job growth, along with rising pressures on the economy, makes it more likely that the Federal Reserve will cut rates in the coming months. Bond yields fell after the jobs data was released, signaling investor expectations for lower Fed rates.

Last month's modest job growth followed a much healthier gain of 224,000 in April. The unemployment rate remained at a nearly 50-year low of 3.6%.

The hiring gains last month were the fewest since February. The government also revised down the job growth for March and April by a combined 75,000. In the first five months of this year, hiring has averaged 164,000 a month, a solid pace that is enough to lower the unemployment rate over time. Still, it's below last year's pace.

The economy is showing signs of sluggishness just as the current expansion has reached its 10th anniversary. Next month, it will become the longest period of uninterrupted growth on records dating to 1854. Yet consumers have turned cautious about spending, and companies are scaling back their investment in high-cost machinery and equipment.

The economy expanded at a healthy 3.1% annual rate in the January-March quarter, but the Federal Reserve Bank of Atlanta estimates that annual growth will slump to just 1.5% in the April-June quarter.

In May, wages rose 3.1% from a year earlier, down slightly from last month's gain of 3.2%. That was the smallest annual gain since September.

Hiring was weak last month across a broad range of industries. Manufacturers added only 3,000 jobs, a fourth straight month of anemic gains. Construction companies hired just 4,000, financial services only 2,000.

Employers in several industries cut jobs. Retailers shed workers for the fifth straight month as stores struggle with online competition. A category that includes telecom, publishing, and media shed 5,000 jobs. Federal, state and local governments cut 15,000.

Trump's trade wars have become a growing threat. Last month, he increased tariffs on $200 billion in Chinese imports from 10% to 25%. And last week, he threatened to impose 5% tariffs on all Mexican imports to the United States beginning Monday. Those taxes would rise each month until they reach 25% in October unless the Mexican government cuts off a flow of Central American migrants entering the United States from through Mexico.

The higher costs from the import taxes — and the potential for more — are causing some companies to scale back plans for spending, investment and expansion. Orders for machinery and equipment fell 1% in April. A strong dollar, which makes U.S. goods costlier overseas, has also slowed the production and export of manufactured goods. A separate report from the Fed showed that factory output fell 0.5% in April.

Automakers are cutting jobs and production as U.S. sales have slowed. Analysts expect auto sales to fall below 17 million this year after four years above that level.

Ford Motor Co. said last month that it was shedding 7,000 white-collar jobs — about 10% of its salaried workforce — as part of preparations for an industry driven more by electric and autonomous vehicles. Last year, GM said it would lay off 14,000 workers.

Home sales have also been weak this year despite a sharp drop in mortgage rates. Sales fell 4.4% in April compared with a year earlier. Price increases are slowing in much of the country, though, which, combined with more affordable mortgages, could soon revive sales.

  • Associated Categories: Local/State News, Associated Press (AP), AP National News, AP Online National News, Top General short headlines, AP Business, AP Business - Economy, AP Business - Industries, AP Business - Financial Services
© Copyright 2019 AccessWDUN.com
All rights reserved. This material may not be published, broadcast, rewritten, or redistributed without permission.
US employers add just 75,000 jobs as unemployment stays 3.6%
US employers pulled back on hiring in May, adding just 75,000 jobs; unemployment stays a low 3.6%
9:25AM ( 11 minutes ago )
Prominent investigative journalist detained in Russia
Russian police says a prominent investigative journalist is facing charges of drug dealing
9:24AM ( 11 minutes ago )
Putin says US unilateralism undermines global trade
Russian President Vladimir Putin has criticized the United States for using pressure and sanctions to keep its economic supremacy, warning that it will erode global stability
9:22AM ( 13 minutes ago )
Associated Press (AP)
US employers add a weak 75,000 jobs; unemployment stays 3.6%
US employers pulled back on hiring in May, adding just 75,000 jobs; unemployment stays a low 3.6%
8:42AM ( 54 minutes ago )
Conservative rivals battle as May exits, defeated by Brexit
Prime Minister Theresa May formally steps down as Conservative Party leader on Friday, defeated by the Brexit conundrum
8:36AM ( 59 minutes ago )
Pence: US 'encouraged' by Mexico's proposals as tariffs loom
US and Mexican officials say they are making progress in their talks to avert the 5% tariffs on all Mexican goods that President Donald Trump has threatened to impose
8:13AM ( 1 hour ago )
AP National News
US-Mexico talks continue, Trump says more progress needed
Talks between US, Mexican officials continue as Trump's 5% Mexico tariff deadline looms
4:18AM ( 5 hours ago )
Teens graduating in California town nearly destroyed by fire
A Northern California town that was mostly destroyed by a wildfire is celebrating the graduation of its high school class
3:30AM ( 6 hours ago )
Famed Indian climber nearly died on peak where team was lost
Legendary Indian mountaineer says modern mountaineering bears little resemblance to the expeditions he led, with tight schedules and climbers' inexperience leading to more casualties on Himalayan peaks
3:15AM ( 6 hours ago )
AP Online National News
Once a book selling giant, Barnes & Noble sold to hedge fund
Barnes & Noble, a one-time giant in the bookselling world, is sold to a hedge fund for $476 million
8:16AM ( 1 hour ago )
Warsaw's plastic palm tree 'dies' to mark climate threat
A giant plastic palm tree that has become an artistic symbol of Warsaw has "died" as part of a stunt to draw attention to climate change
8:15AM ( 1 hour ago )
Global stocks trail US rise on US-Mexico trade deal optimism
Global markets mostly higher ahead of employment report from the US
7:54AM ( 1 hour ago )
AP Business
GOP officials rehash old fight against Volkswagen union vote
Top Tennessee Republicans are predicting economic harm if workers at Volkswagen's car assembly plant in Chattanooga vote to unionize
1:20AM ( 8 hours ago )
Mexico's tequila exporters warily eye US tariffs deadline
Mexican exporters of tequila, the key ingredient in margaritas, are as worried as anyone about possible slumping revenues and job losses over threatened US tariffs on all imports from the country
12:01AM ( 9 hours ago )
US and Mexico: More talks, no deal yet to avert tariffs
U.S. and Mexican officials have failed again to reach a deal to avert import tariffs that President Donald Trump is threatening to impose
9:19PM ( 12 hours ago )
AP Business - Economy
Japan plans carbon emission cuts, more nuclear energy
Japan is calling for further efforts to cut carbon emissions by promoting renewables but also nuclear energy despite the 2011 Fukushima reactors meltdowns
1:53AM ( 7 hours ago )
Automakers urge California, US to restart mileage talks
Major automakers are urging the Trump administration and California to go back to the negotiating table over vehicle mileage standards to prevent a legal battle
11:07PM ( 10 hours ago )
Michael Bloomberg to plunge $500M into clean energy effort
Former New York City Mayor Michael Bloomberg is plunging $500 million into an effort to move the United States to a 100% clean energy economy and close all of the nation's remaining coal plants by 2030
9:42PM ( 11 hours ago )
AP Business - Industries
The Latest: European Central Bank gives economy more support
The European Central Bank has taken action to support the economy in the 19 countries that use the euro, responding to fears about global trade conflicts
7:51AM ( 1 day ago )
World stocks advance ahead of European Central Bank update
World markets rise on hopes that European Central Bank would shore up support for the economy
7:39AM ( 1 day ago )
World markets advance ahead of European Central Bank update
World markets rise on hopes that European Central Bank would shore up support for the economy
5:51AM ( 1 day ago )
AP Business - Financial Services
Prominent investigative journalist detained in Russia
Russian police says a prominent investigative journalist is facing charges of drug dealing
9:24AM ( 11 minutes ago )
Putin says US unilateralism undermines global trade
Russian President Vladimir Putin has criticized the United States for using pressure and sanctions to keep its economic supremacy, warning that it will erode global stability
9:22AM ( 14 minutes ago )
Greece: Athens mosque likely to open in September
Greece's education and religion minister says the country's first state-sponsored mosque is likely to begin operating in September, about three years after its construction was approved by parliament
9:06AM ( 30 minutes ago )
Rights group asks for worker-safety probe at Tokyo Olympics
Human-rights watchdog group asks IOC, Tokyo Olympic organizers to investigate worker safety
9:05AM ( 31 minutes ago )
Attorneys seek light sentence for cop who shot 911 caller
Attorneys for a Minneapolis police officer convicted of murder in the shooting of an unarmed woman who had called 911 say it wouldn't do society any good to send him to prison
8:50AM ( 46 minutes ago )