Wednesday, June 01, 2011

US Job Market Drops, Dow Tumbles over 200

 American job producers cut payrolls more than expected and almost landed the jobs market back into the red. In an unofficial report from ADP Employer Services it appears that the job market is cooling.

According to their May report, less than 40,000 jobs were created that month. This is a drop of well over 100,000 from April and well below the numbers needed to bring unemployment down. To make matters worse, ADP's numbers are usually higher than the government numbers.

“It is a warning shot across the bow that job growth is also weakening along with the other high frequency numbers,” Eric Green, chief market economist at TD Securities Inc. in New York, said in an e-mailed note to clients. “The weakness reflects a general slowdown and turn in sentiment that set in with the sharp rise in energy prices, disruptions from Japan, and to a lesser extent risk aversion stemming from the Greek fiasco.”

This also came as the estimated job gains were between 100,000 and 200,000.

In response, the Dow has fallen over 200 points, led by the financial sector. This comes after a drop last month:

Stocks hit their session lows Wednesday, led by financials and industrials, following several economic reports that pointed to a weakening recovery and ahead of the closely watched government jobs report on Friday. 

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