WASHINGTON—A disappointing U.S. jobs report sent the stock market into a dive Friday, but while the figures indicate a slowing economy, some analysts say predictions of gloom are an overreaction and may impact confidence levels at a critical time.
Stock prices plunged following a report from the U.S. Bureau of Labor Statistics (BLS) indicating that the U.S. economy created 80,000 jobs in June, which was slower than expected and well below the number needed to bring down the 8.2 percent unemployment rate.
The June data saw payrolls up an average of 75,000 per month over the second quarter, well below the average of 226,000 in the prior three months, stated Jared Bernstein, a former economic adviser to the White House, in his blog.
Bernstein notes that the slowdown is settling into a general trend and is across many industries, including manufacturing which added just 11,000 in June, compared to 41,000 across the first quarter.
