The May job report is out and it looks like job growth has slowed in the last month. According to CNNMoney May was expected by economists to bring in about 150,000 jobs to the job market but only 69,000 were added. Unemployment went up to 8.2% from April’s 8.1%, the highest since last June.
The May job reports could indicate a possible dip in the economy during the summer. The reports may not bring in good prospects for President Obama’s campaign. Creating jobs in the U.S. is one of the top issues for American voters.
Reuters writer Steve Holland wrote, “The cold reality for Democrats is that with the election only five months away, there are dwindling options for turning around the jobs picture quickly enough to give Americans’ confidence that the next four years under Obama's leadership would be better than the last three and a half.”
Obama announced to Golden Valley, Minnesota that the slow growth in the job market is due to the effects of high gas prices and the economic instability in Europe as well as the slow down in Chinese economy. Adding on that congress should’ve passed a tax break for small business owners to hire more workers.
Last month, private companies added only 82,000 jobs, and cutting back on hiring. Construction suffered the most, due to a decline in the last two years. Employment increased in health care, transportation and wholesale trade. Manufacturing continued to add positions but at a slow pace from last year.
Romney states his position as an executive would make him more suitable in handling the state of the U.S. economy better than Obama. Romney goes on to calling the May job reports a “harsh indictment” of how Obama is handling the economy.
Obama said, “From the moment we first took action to prevent another depression, we knew the road to recovery would not be easy, we knew it would take time, we knew there would be ups and downs along the way.”
Matt McDonald, an analyst at Hamilton Place Strategies remarked, “The worst part about this jobs report is that it was the last chance for a decent report before the full consequence of the slow-moving European implosion really starts to influence the global and U.S. economies.”
The downturn in the May reports will lead to a “potentially more negative campaign” especially in states where votes are close and that have been hit hard by the economy.
Romney is campaigning by using his experiences as equity firm Bain Capital, but Obama is hitting back that Bain invested in some companies and ended up losing jobs while profiting.