The U.S. economy added just 54,000 jobs in May, and the unemployment rate rose to 9.1 percent, according to the latest report by the Bureau of Labor Statistics. The private sector added 83,000 jobs.
CAP Senior Economist Heather Boushey said:
“Today’s data from the Bureau of Labor Statistics show that the job market has weakened considerably as employers added only 54,000 jobs in May. Yet Congress is dithering on increasing the debt ceiling. Failing to do so will lead to a sharp and immediate drop in economic output due to reductions in government spending and investment and their effects on the private sector. Employers’ confidence in the ability of Congress to act may be already shaken. Clearly, today’s data show that the labor market would be unable to handle such a large shock. Policymakers should focus first and foremost on doing no harm and acting to sustain, not derail, the economic recovery.”