Employers added just 38,000 workers – when we need hundreds of thousands of new jobs per month to keep the recovery going. It’s the lowest job gain since 2010.
The official unemployment rate dropped to 4.7 percent from 5 percent, mainly because people dropped out of the labor force altogether and were no longer considered unemployed.
Robert Reich shared on Facebook:
'One month’s data isn’t a trend. But the Labor Department also revised downward March and April’s jobs figures by 59,000. That means that in the last three months only 116,000 new jobs have been added each month on average -- far below the average of nearly 240,000 jobs each month over the previous two years.
Clearly, the economy is slowing. What to do (or not do)?
1. The Fed shouldn’t raise interest rates anytime soon.
2. Congress should immediately spend more on infrastructure.
3. The minimum wage should be raised and the Earned Income Tax Credit expanded so workers have more money in their pockets to spend.
4. Eliminate Social Security payroll taxes on the first $15,000 of income, so workers have more money to spend (and make up the shortfall by raising the cap on income subject to payroll taxes).
Of the above suggestions, only the first will be followed. I fear we're heading into a recession.'