U.S. employers may step up hiring only in May, a sign of a slight economic growth moderate, but not strong enough to convince the Fed to reduce the amount of cash injection banking system.
U.S. may have increased 170,000 jobs last month, the unemployment rate held steady at a lofty 7.5 percent, according to a Reuters survey of economists.
After a winter's economy seems to be turning, May will be the third consecutive month, employment outside the agricultural sector increased by less than 200,000.
"Labor market may not be as strong as we thought, Cummins, UBS (UBS) economist in Stamford, Conn., said:" Kevin.
The Labor Department will release May employment report on Friday at 8:30 am EDT.
The report may exacerbate fears weaken the government's austerity enacted this year, economic vitality, it may dampen speculation that the Fed may soon cut bond purchase program designed to lower interest rates and increase employment.
U.S. central bank officials hinted that they could be close to tapering buy bonds, despite the modest economic growth is not expected to pick up until the end of this year, government spending cuts from the sting began to fade.
Many government agencies led to hiring freezes, budget cuts and attrition, you can slowly reduce employment. Government payrolls are expected to decline in May of 10,000.
Lasting damage
Approximately 4.4 million Americans have been unemployed for more than six months, about three million more than pre-recession levels. Longer workers lost their jobs, they basically become unemployed, the greater the risk. Addressing persistent economic losses, and has lent the Fed's efforts to stimulate economic growth urgency.
However, the pace of job growth in May an average of 12 months to four months or so. During this period the unemployment rate fell by about 0.5 percentage points, a decrease of nearly 700,000 and long-term unemployed ranks.
Berger, "Guy said:" This is a slow progress, but it is still progress, Royal Bank of Scotland (RBS) economist, also at Stanford.
Fed officials next meeting June 18-19, is widely expected to keep buying $ 8.5 billion of dollar bonds a month. Many economists do not expect the job market is strong enough, the Fed started buying bonds to reduce its first 12 months.
In the last three months of 2012, after almost no growth in the first quarter U.S. economic growth modest annual growth rate of 2.4%, but lost momentum towards the end of the quarter. Most economists expect growth in the quarter about 1.5%.
U.S. factories are feeling the pressure from Europe's debt crisis, which sent a chill on the global economy. Institute for Supply Management said Tuesday that U.S. manufacturing activity contracted in May. Manufacturing employment is considered to be a meager 3,000 jobs last month rose.
The report is expected to show a slight rise to 34.5 hours and average weekly working time length, which may mean that demand strong enough to trigger faster hiring in the coming months. Average hourly earnings rose 0.2%.
Another indicator of labor market conditions, employment or looking for work in the share of the population. Some recent decline in the unemployment rate has been as workers leave the labor, either because they are retired, back to school, or to give up looking for work.
Labor force participation rate was 63.3% in April remained at 34-year low for the second consecutive month. This indicator can point to a stabilization of the labor market healing.
 
 



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