The economy could be headed for a stall in its recovery. According to jobs report by the Department of Labor that came out on Friday, non-farm payrolls only added 69,000 jobs in May. It was projected to be as high as 155,000 for the month. March and April will also disappointing months. The unemployment rate, currently at 8.2%, is up one-tenth of a percent and is the first increase in unemployment in almost a year.
The disappointing jobs report is wrecking havoc on the banking sector and fears are reemerging about a double-dip recession. The S & P Index fell 2.48% and the Standard and Poor’s 1500 was down 3.39%. Bank stocks had been doing well this year, but according to bank stock analyst Gerard Cassidy, “We’re going to need to see a resurgence in the economy to drive bank stocks higher from here.”
European stocks are also down and the number of people out of work is steadily increasing.