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.