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Help for job market unlikely to come from Congress

Jun 2, 2012 12:57 AM

The Associated Press


This AP graphic shows U.S. Job creation in May from 2008-2012. Only 69,000 jobs were added in May, the fewest in a year, and the unemployment rate rose from 8.1 percent to 8.2 percent. (AP Photo)

By The Associated Press AP

WASHINGTON (AP) — The U.S. economy suddenly looks a lot weaker.

Only 69,000 jobs were added in May, the fewest in a year, and the unemployment rate rose from 8.1 percent to 8.2 percent.

The dismal jobs data will heighten fears that the economy is sputtering. It also puts President Barack Obama on the defensive five months before his re-election bid.

The Labor Department also said Friday that the economy added far fewer jobs in the previous two months than first thought — 11,000 fewer in March and 38,000 fewer in April. And the increase in unemployment was the first in 11 months.

Job creation is the fuel for the nation’s economic growth. When more people have jobs, more consumers have money to spend — and consumer spending drives about 70 of the economy.

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Here’s what The Associated Press’ reporters are finding:

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POLITICAL GRIDLOCK

Democrats and Republicans talk a lot about job creation. But a sharply divided Congress could end up being a job killer. Unless lawmakers intervene by the end of the year, income tax cuts will expire and $100 billion in spending cuts will kick in.

The Congressional Budget Office estimates that would cause the economy to shrink in the first half of 2013. That would meet the traditional definition of a recession: when the economy shrinks for two consecutive quarters.



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