Experts ponder what would help US hiring

<![CDATA[<p>The US economy suddenly looks a lot weaker. </p><p>US employers created only 69,000 jobs in May, the fewest in a year, and the unemployment rate ticked up. The dismal jobs data will fan fears that the economy is sputtering. It also puts President Obama on the defensive five months before his re-election bid. And it could lead the Federal Reserve to take further steps to help the economy.</p><p> Here’s what Associated Press reporters are finding.</p>]]>

<![CDATA[<h3>Seeking solutions</h3> <p>What can be done to energize US hiring? Sung Won Sohn, an economics professor at California State University, said Congress and the Obama administration must work immediately to address the “fiscal cliff” looming at year’s end. That’s when the economy will be hit with higher taxes and across-the-board government spending unless Democrats and Republicans forge some compromise. –Martin Crutsinger, AP Economics Writer</p>]]>

<![CDATA[<h3>Predicting more Fed action</h3> <p>”This clearly puts the Fed back in play for a near-term easing operation,” says Jay Feldman, director of US economics for Credit Suisse. Feldman expects the Fed to act at its next meeting June 19-20 — perhaps by buying mortgage-backed investments to try to push down long-term mortgage rates or by doing something unexpected. — Paul Wiseman, AP Economics Writer</p>]]>

<![CDATA[<h3>Pain on Wall Street</h3> <p>Stocks sank after the release of the jobs report. The Dow Jones industrial average dropped more than 200 points, erasing what was left of its gain for the year and putting the index on track for its worst one-day drop since November.</p> <p>Economic data from Europe and Asia also came in weak, and traders sold all types of risky investments and stampeded toward the safety of US government bonds. — Daniel Wagner, AP Business Writer</p>]]>

<![CDATA[<h3>Back in the hunt: older workers</h3> <p>Last month, 642,000 people began looking for work. And nearly half were 55 or older. Many have had no choice. </p> <p>Sara Rix, a policy analyst at the AARP’s Public Policy Institute, suggested that last month’s influx of older workers shows many had become more hopeful about their job prospects after hiring strengthened early this year. — Christopher S. Rugaber, AP Economics Writer</p>]]>

<![CDATA[<h3>A sobering trend</h3> <p>That more people are looking for work should be good news. It suggests that Americans are increasingly optimistic about their job prospects.</p> <p>But analysts cautioned that May’s influx was a small one that doesn’t alter the broader trend. Heidi Shierholz, an economist at the liberal Economic Policy Institute, estimates that sluggish hiring has discouraged 3.6 million people from looking for work since the recession began in December 2007.</p>]]>

<![CDATA[<h3>Dueling political views</h3> <p>White House economist Alan Krueger said that while the latest jobs report illustrated the need for faster growth, the administration welcomes any increase in jobs. “We are on a better path then we had been before the president came into office,” he said. </p><p>Obama’s Republican challenger, Mitt Romney, countered: “Today’s weak jobs report is devastating news for American workers and American families.” — Darlene Superville, Associated Press Writer</p>]]>

<![CDATA[<h3>Government isn’t helping</h3> <p>Government jobs cuts are worsening the jobs picture. The federal government shed 5,000 jobs in May, state governments 5,000, and local governments cut 3,000. Overall, governments have cut jobs in 10 of the past 12 months.</p><p> “Typically, the government offers a base level of support” when the economy is weak, says Scott Brown, chief economist at Raymond James & Associates. — Paul Wiseman, AP Economics Writer</p>]]>

<![CDATA[<h3>Consider the ’employment rate'</h3> <p>To assess the job market, most people look at the unemployment rate. But it can be misleading. The rate can fall, for example, even if hiring is weak. This can happen when many people stop looking for work and are no longer counted as unemployed. The rate can also rise even when jobs are created, if more people start looking. The number of unemployed often rises. — Christopher S. Rugaber, AP Economics Writer</p>]]>

<![CDATA[<h3>Europe still worse</h3> <p>As bad as the May employment numbers were, Americans can take solace from one thing: It’s a lot worse in Europe. Unemployment in the 17 countries that use the euro currency hit 11 percent in April, the highest since the single currency was introduced in 1999, the European Union’s Eurostat office reported Friday. — Paul Wiseman, AP Economics Writer; Pictured: Workers marched in downtown Rome.</p>]]>

<![CDATA[<h3>Coal workers squeezed</h3> <p>A warm winter that cut electricity demand and decade-low natural gas prices have led to tough times for the coal industry. Demand for coal in the United States is projected to drop to the lowest level since 1992 this year. In response, coal companies are cutting back, especially in West Virginia and Kentucky, where relatively expensive coal is produced. — Jonathan Fahey, AP Energy Writer</p>]]>

<![CDATA[<h3>Couch-surfing</h3> <p>The job market remains tough even for the very educated or very experienced. Erica Johnson, 33, calls herself a “couch-surfing PhD” because she’s been sleeping on sofas in the homes of friends and relatives in Lexington, Ky. Armed with a doctorate in education policy, she would like to work as a college administrator. But most management jobs she has pursued require more experience. Yet she is considered overqualified for lower-level jobs. — Christopher S. Rugaber, AP Economics Writer</p>]]>

<![CDATA[<h3>Slow recovery</h3> <p>Since the recession officially ended in June 2009, job gains have been fitful. Hiring has only recently topped 2 percent of total payrolls — just one-third the pace after the 1981-82 recession. What’s going on this time? Mainly, the economy is too weak to drive more job growth. Consumers are still cautious about spending. And the housing sector is still weak. Both are weighing on the economy more than in previous recoveries. — Christopher S. Rugaber, AP Economics Writer</p>]]>