>> Gass on Wall Street as America see the smallest amount of job creation in more than five years. I'm Conway Gittens in New York where everyone is just shocked by the numbers out of the Labor Department on Friday. The US economy added only 38,000 positions in May, which was way, way below expectations by every measure imaginable.
This report is just considered terrible and points to a general deceleration in economic growth. The unemployment rate tumbled to 4.7% from 5% because half a million people stopped looking for work. Now the six-week strike at Verizon did have an impact on the overall numbers, because the striking workers are considered unemployed, because they didn't get a paycheck.
Now they did go back to work this month, so that may help out the numbers in terms of next month. But that only accounts for some of the weakness we saw in the May jobs report. The goods producing sector, which include manufacturing and mining, lost jobs last month.
As a matter of fact, the loss was the biggest in six years. Temporary help, which is seen as a barometer of future hiring, that tumbled as well. Now this is the last big important piece of economic data before the Federal Reserve meets in June. And by all accounts, anyone expecting a rate hike at that meeting have now reversed that thought.