Weak US recovery stalls

The last thing the very nervous global markets needed was bad news from the US economy. But after disappointing US unemployment figures this week, that's what they got. The already-weak US recovery has hit a stumbling block.

With global markets already jittery late last week, the last thing they needed was bad news from the world's biggest economy. But that's exactly what they got. The S&P lost 3.4% on Friday as employment figures fell far short of expectations. US non-farm payrolls rose by 431,000 in May, but of these 411,000 were temporary workers hired for the census. These jobs will disappear in a few months. Private employment rose by a mere 41,000.

True, the unemployment rate dipped from 9.9% to 9.7%, but only because the labour force fell as people stopped looking for work. The average duration of unemployment and long-term unemployment (the number of people out of work for at least half a year) hit new records. One in six Americans is under- or unemployed and almost six people are fighting for every vacancy.

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free
https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748.jpg

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Sign up
MoneyWeek

MoneyWeek is written by a team of experienced and award-winning journalists, plus expert columnists. As well as daily digital news and features, MoneyWeek also publishes a weekly magazine, covering investing and personal finance. From share tips, pensions, gold to practical investment tips - we provide a round-up to help you make money and keep it.