US economy adds paltry 38,000 jobs in May for weakest growth since 2010

The US economy added just 38,000 jobs in May, 122,000 fewer than expected and the weakest growth since 2010. The unemployment rate slipped down to 4.7%, the Department of Labor announced on Friday.

The report added to concerns that the US economy is slowing, ahead of a crucial meeting of the Federal Reserve, and was immediately seized on by Republican presidential candidate Donald Trump. “Terrible jobs report just reported. Only 38,000 jobs added. Bombshell!” he wrote on Twitter.

A strike by 40,000 Verizon workers impacted the numbers, the labor department said, and without the strike the number of jobs added would have been 72,000, which is still less than half the expected job growth.

The unemployment rate is now the lowest it has been since November 2007, and job gains in 2016 have slowed sharply f-rom the 240,000 average of the last two years. On Friday, the Department of Labor also cut its assessment of the number of jobs added in March and April by 59,000.

“The weakness in May’s payrolls was widespread. Manufacturing lost 10,000 jobs, construction shed 15,000 jobs and temporary help fell by 21,000,” wrote Paul Ashworth, Capital Economics chief US economist, in a note to investors. “A June rate hike f-rom the Fed is now very unlikely.”

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May’s report is the last before the Fed’s next meeting on 14-15 June, when the US central bank may raise interest rates again. The gain was the smallest since September 2010 and is sure to add to speculation that a rate hike could be delayed until July, already uncertainty about Britain’s referendum to exit the EU. That vote will take place on 23 June.