Friday, May 4, 2012

U.S. hiring slows, raising worries on recovery





According to Reuters, U.S. employers cut back on hiring in April and more people gave up the hunt for work, dimming hopes the economy was turning a corner just as President Barack Obama prepared to launch his re-election campaign.

Employers added 115,000 workers last month after increasing payrolls 154,000 in March, the Labor Department said on Friday. Economists had expected to see the creation of 170,000 jobs.  The unemployment rate ticked a tenth of a point lower to 8.1 percent, a three-year low, but only because people left the workforce.

It was the third straight month in which hiring slowed, intensifying fears that the U.S. recovery is losing momentum and opening the door a bit wider for the Federal Reserve to ease monetary policy.  Still, the report was not all negative. The government revised upward its earlier estimates for payroll growth in February and March by a combined 53,000...

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