May Unemployment Edges Down as the Economy Slows

May Unemployment Edges Down as the Economy Slows

The unemployment rate in May was little changed from the previous month, edging down from 4.7% to 4.6%, according to the Federal Reserve now notes that the economy is also slowing. The ugly mix of inflation and slow growth has economists concerned. Over the first 5 months of 2006, prices rose by 5.2%, much higher than the 3.4% increase that occurred over the entire year of 2005.

Combined with that are signs that the economy’s growth, while still positive, is decelerating. From the mid-April through the first week in June, deceleration in economic growth was clearly discernible.