© David Mcnew/ReutersJob seekers fill out applications during the 11th annual Skid Row Career Fair the Los Angeles Mission in Los Angeles, California, May 31, 2012.
The Labor Department reported Friday that the unemployment rate edged up to 8.2 percent, its first increase in 11 months, as American employers fretted over Europe, higher pump prices and the persistent problems in the housing market.
Non-farm payrolls rose by 69,000, the lowest increase in a year and well below the 150,000 jobs that economists had expected. The previous two months' numbers were also revised lower, adding to the concerns about a sputtering recovery.
"It's an awful number. Not only is it awful in its numerical terms, it comes at a very skittish time in the markets because of the European crisis," said Rick Meckler, president of Libertyview Capital Management.
"The hope for the U.S. investors had been that the U.S. economy at least could continue its growth even as Europe was declining. A number like this brings concern about a global slowdown. The time has probably come to for some new government action in the U.S., Europe and China," Meckler said.
The news came after a government report Thursday that showed the U.S. economy expanded at a 1.9 percent annualized rate in the first quarter, below the initial estimate of 2.2 percent and much slower than the 3.0 percent pace clocked in the fourth quarter. Both reports spelled trouble for President Barack Obama as he battles for re-election against former Massachusetts Gov. Mitt Romney.
"Today's weak jobs report is devastating news for American workers and American families," Romney said in a statement shortly after the data was released.
The Obama administration said that while the jobs data was unacceptable, Congress needed to act to help the economy.
"Congress has to take some action because while we see the unemployment rate where it is, it's not acceptable," Solis told CNBC.
add in the downward revision to the last two periods. That's a definite sign of the times, which looks like 1937-8 recession within a depression pattern is in play. Seems we should be looking for another 'bank holiday' after the election and perhaps after the inauguration if a new guy is put on stage.
This reality check in jobs was bound to come sooner or later as the manipulation has to factor in the lack of jobs eventually. The coverup through the birth/death of business data can only take you so far. This is why WallStreet has that saying: 'Sell in May and go away.'
This time you don't want to come back unless you like playing 'chicken' with that 'holiday' later this year or early next... if the pattern holds. This is why all those trillions are flooding into the US Tbills dropping the yield below 1.5%, as that kind of fiat money has no where else to go. There simply is no other 'safe harbor', and this is called a 'defensive play', which loses you money, but less than the rest of the market, unless you are buying a real asset like the precious metals, which if you look at a long term chart, 5 or 10 year, you will see the repeat pattern from late '08 as this retest at 1550 mirrors that one at ~720 and the parabolic curve comes into play as the temporal period contracts. Should be fun to watch.