Despite the slowdown, it was the eighth consecutive month of positive jobs growth in the US Monday, 6 June 2011
US employment in sharp slowdown
Despite the slowdown, it was the eighth consecutive month of positive jobs growth in the US US employment growth slowed sharply in May, with only 54,000 net new jobs added during the month.
Markets had expected a rise of 150,000. It follows a downwardly revised but still rapid 232,000 increase in April.
Despite the slowdown, it was the eighth month in a row of positive employment growth, according to data from the US Labor Department.
The unemployment rate also rose unexpectedly to 9.1%, from 9% a month earlier.
The number of unemployed remained largely unchanged at 13.9 million, but the number of long-term unemployed - out of work for more than 26 weeks - rose by 361,000 to 6.2 million.
The private sector created 83,000 new jobs in the month, while local governments reduced their headcount for the the 22nd month in a row, by an unusually large 28,000.
"Job gains continued in professional and business services, health care, and mining," said the Bureau of Labor Statistics.
Mark Lamkin Chief executive, Lamkin Wealth Management“We are in for a rough day [on the stock market]”
Total employment in the US still remains nearly 5% below the pre-recession peak it registered nearly three-and-a-half years ago, in what has been the worst jobs recession since World War II.
The employment and unemployment figures are collected using different methods.
Stock markets fell sharply following the data release, with the FTSE 100 index falling 0.8%, before bouncing back slightly.
"It's a bad report but not a horrible one because we are adding jobs nonetheless, just less than what we want," said Mark Lamkin of Lamkin Wealth Management.
"People sell first and ask questions later, so after these numbers we are in for a rough day [on the stock market]."
FTSE 100 IndexLast Updated at 03 Jun 2011, 09:44 ET *Chart shows local time 
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