Here we go again

Quick! Everyone freakout! It’s a bad monthly jobs report. I guess liberalism is doomed, Obama is a failure, and Mitt Romney’s ascent to be the Greatest President Ever is assured [WSJ]:

WASHINGTON—U.S. job growth slowed sharply in May, the latest indication that the economy has lost momentum.

Nonfarm payrolls grew by a 69,000 last month, the Labor Department said Friday, the smallest gain in a year. The unemployment rate, obtained by a separate survey of U.S. households, ticked one-tenth of a percentage point higher to 8.2%, the first increase in nearly a year.

Economists surveyed by Dow Jones Newswires expected a gain of 155,000 in payrolls and for the jobless rate to remain at 8.1% in May.

Compounding an already weak report, March and April payroll gains were revised down. Nonfarm payrolls increased by 77,000 in April, compared with the previously reported 115,000, and March payrolls grew by 143,000 versus a previously reported 154,000.

The unemployment rate has fallen sharply since August, when it was 9.1%. But even though companies are hiring, the pace of job creation remains well below figures at the start of the year—the economy added an average of 226,000 jobs a month in the first quarter.

Nearly three years after the recession ended, the economy has failed to gain traction amid broad uncertainty related to Europe’s debt crisis, the potential for steep U.S. tax increases and spending cuts next year, and signs of slower growth in developing countries.

Federal Reserve officials have said they expect only gradual improvement in the U.S. labor market the rest of this year. The Fed is forecasting an unemployment rate somewhere between 7.8% and 8.0% by the end of 2012.

If the labor market stalls, the Fed could reconsider measures to stimulate the economy.

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