Hidden Bombs in the Unemployment Numbers?
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U6. No, it's not some kind of explosive, but it could be considered a landmine in the economic recovery.

The Labor Department reported Friday that employers added 69,000 jobs in May, the fewest in a year and considerably short of the 158,000 new positions economists expected. The unemployment rate ticked up to 8.2% from 8.1% in April -- the first increase in almost a year. The government also revised downward earlier estimates of job growth for March and April, shaving 11,000 and 38,000 jobs, respectively.

"This is going to cause a lot of people to re-think the pace of recovery and their stance on policy," says Paul Edelstein, an economist at IHS Global Insight. "Given what happened in April, it's a game changer. A lot of forecasts will have to be re-examined, this is a big hit."

At this rate, the economy is creating on average 73,000 jobs a month over the last two months, impeding any progress in the economic recovery. Indeed, it might spur the Federal Reserve to step in to prevent the economy from slipping back into a recession.


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