Jobs Creation Slows Dramatically With Payrolls Up Just 75000 In May Much Worse Than Expected

(CNBC) Jeff Cox June 7 2019 Job creation decelerated strongly in May with non-farm payrolls up by just 75000 even as the unemployment rate remained at a 50-year low the Labor Department reported Friday. The decline was the second in four months that payrolls increased by less than 100000 as the labor market continues to show signs of weakening. Economists surveyed by Dow Jones had been looking for a gain of 180000. In addition to the weak total for May the previous two months reports saw substantial downward revisions. Marchs count fell from 189000 to 153000 and the April total was taken down to 224000 from 263000 for a total reduction of 75000 jobs. Stock futures fell and bond yields dropped in reaction to the report. Dow Jones Industrial Average futures turned negative before reversing course and turning positive. The yield on the 10-year Treasury fell to its lowest level since September 2017. We had expected a slowdown after several years of job gains holding around 200000 but not this much of a slowdown" said Beth Ann Bovino U.S. chief economist for S&P Global Ratings. Broadly speaking the report amounted to another dark spot amid fears of a larger sputtering in growth and perhaps a recession within the next year.