Unemployment up a tenth, 175K jobs added - WALB.com, Albany News, Weather, Sports

Unemployment up a tenth, 175K jobs added

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AP Economics Writer,   CHRISTOPHER S. RUGABER

WASHINGTON (AP) - U.S. employers added 175,000 jobs in May, steady hiring but below the more robust pace that took place during the fall and winter. 

The Labor Department says the unemployment rate rose to 7.6 percent from 7.5 percent in April. The increase occurred because more people began looking for work, a good sign.      

The government said the economy added 12,000 fewer jobs in April and March.        

Employers have added an average of 155,000 jobs in past three months, below the average of 237,000 created from November through February.      

The modest gains likely mean the Federal Reserve will continue its bond purchases. The Fed has said it will maintain its pace of bond purchases until the job market improves substantially. The purchases have helped drive down interest rates and boost stock prices.

U.S. stock futures and global markets rose Friday after the Labor Department reported that the economy added 175,000 jobs in May.      

Dow Jones industrial futures rose 19 points to 15,055. S&P futures gained 3.4 point to 1,626.10. Nasdaq futures tacked on 2.75 points to 2,952.25.

The unemployment rate rose to 7.6 percent from 7.5 percent in April. That is being taken as a good sign because more people are looking for work, rather than staying home as many did during the worst periods of the financial meltdown.       

Markets have been roiled all week in anticipation of the jobs report, suffering both their worst two-day losses of the year and then, Thursday, the biggest gain in three weeks.

 

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