Employers probably hired fewer workers in May, a sign U.S.businesses are losing confidence as the world's largest economycools, economists said before a report today.

Payrolls rose by 165,000, the smallest gain in four months,after increasing 244,000 in April, according to the median of 89estimates in a Bloomberg News survey. The jobless rate may havepartially reversed April's advance, falling to 8.9 percent from 9percent.

Companies may try to restrain labor costs amid concern consumerspending, which accounts for about 70 percent of the economy, willkeep slowing as households grapple with rising food and fuelexpenses. The recovery's failure to create more jobs raises theodds Federal Reserve policy makers will hold interest rates closeto zero into next year.

Continue Reading for Free

Register and gain access to:

  • Thought leadership on regulatory changes, economic trends, corporate success stories, and tactical solutions for treasurers, CFOs, risk managers, controllers, and other finance professionals
  • Informative weekly newsletter featuring news, analysis, real-world cas studies, and other critical content
  • Educational webcasts, white papers, and ebooks from industry thought leaders
  • Critical coverage of the employee benefits and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.