Unemployment rose in May on worst jobs report in a year

The U.S. economy suddenly looks a lot weaker. According to the monthly jobs report out this morning by the Labor Department, American employers created just 69,000 jobs in May—the fewest in a year—and the unemployment rate ticked up to 8.2%. The dismal jobs data will likely fan fears that the economy is sputtering. It could also dim President Barack Obama’s re-election prospects. And it could prompt the Federal Reserve to take further steps to help the economy. The Labor Department also says the economy created far fewer jobs in the previous two months than earlier thought: It revised those figures down to show 49,000 fewer jobs created. The unemployment rate rose 0.1% in May, up from 8.1% in April, the first increase in 11 months. In one of the few positive points in the May report, more people began looking for work last month, but not all found jobs. The increase drove the number of unemployed to 12.7 million, which pushed up the unemployment rate slightly. The government doesn’t count people as unemployed unless they are actively looking for work. But most of the report is disappointing. The average workweek was shortened to 34.4 hours, which suggests companies are seeing less consumer demand. The average hourly wage ticked up two pennies, to $23.41. It has increased only 1.7% in the past year, trailing the rate of inflation. Get more figures in the full story from The Associated Press here.