US hiring falls to worst in 5 years; rate drops to 4.7 pct.
WASHINGTON - U.S. hiring plunged in May to its lowest level in more than 5 years, a sign that employers turned cautious after the economy barely expanded in the first three months of the year.
The Labor Department says employers added just 38,000 jobs last month, the fewest since September 2010. Yet the unemployment tumbled to 4.7 percent from 5 percent. That is the lowest rate since November 2007.
The rate fell for a problematic reason: Nearly a half-million unemployed Americans stopped looking for work, and were no longer officially counted as unemployed.
The disappointing figures will likely raise doubts that the Federal Reserve will boost the short-term interest rate it controls at its upcoming meetings in June and July. Many analysts had expected an increase by July.
Desktop NewsClick to open Continuous News in a sidebar that updates in real-time.
LSU fans flying high as Tigers advance to CWS finals
Water creeps into Central neighborhoods overnight
VIDEO: Dad, daughter catch teen as she falls from Six Flags ride
Watson residents say new drainage ditches will do more harm than good
EBR Metro Council to vote on parish-wide smoking ban Wednesday