'Losses and Surge in Oil Spread Gloom on Economyby: Peter S. Goodman, The New York Times
The unemployment rate surged to 5.5 percent in May from 5 percent - the sharpest monthly spike in 22 years - as the economy lost 49,000 jobs, registering a fifth consecutive month of decline, the Labor Department reported Friday.
The weak jobs report, coupled with a staggering rise in the price of oil - up a record $10.75 a barrel to more than $138 - unleashed a feverish sell-off on Wall Street, sending the Dow Jones industrial average down nearly 400 points. The dollar plunged against several major currencies.
Investors' recent hopes that the United States might yet skirt a recession sank swiftly in the face of gloomy indications that the economy is gripped by a slowdown and pressured by record fuel prices.
For tens of millions of Americans struggling to pay bills, the jobs report added an official stamp of authority to a dispiriting reality they already know: A deteriorating labor market is eliminating paychecks just as they are needed to compensate for the soaring cost of food and fuel, and as the fall in house prices hacks away at household wealth and access to credit.
"It's unambiguously ugly," said Robert Barbera, chief economist at the research and trading firm ITG. "The average American already knows that gas prices are up a ton and it's really hard to find a job. Sally and Sam on Main Street are already well aware of this, and that's why sentiment surveys are lower than they were in each of the last two recessions."'
The weak jobs report, coupled with a staggering rise in the price of oil - up a record $10.75 a barrel to more than $138 - unleashed a feverish sell-off on Wall Street, sending the Dow Jones industrial average down nearly 400 points. The dollar plunged against several major currencies.
Investors' recent hopes that the United States might yet skirt a recession sank swiftly in the face of gloomy indications that the economy is gripped by a slowdown and pressured by record fuel prices.
For tens of millions of Americans struggling to pay bills, the jobs report added an official stamp of authority to a dispiriting reality they already know: A deteriorating labor market is eliminating paychecks just as they are needed to compensate for the soaring cost of food and fuel, and as the fall in house prices hacks away at household wealth and access to credit.
"It's unambiguously ugly," said Robert Barbera, chief economist at the research and trading firm ITG. "The average American already knows that gas prices are up a ton and it's really hard to find a job. Sally and Sam on Main Street are already well aware of this, and that's why sentiment surveys are lower than they were in each of the last two recessions."'
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