WASHINGTON — A bleak jobs report suggests the recovery from the Great Recession will be longer and bumpier than many economists had envisioned.
Most economists say job growth should strengthen later this year as gasoline prices drop further and the economy recovers from the effects of natural disasters in the U.S. and abroad.
The unemployment rate in May inched up to 9.1 percent from 9 percent, the Labor Department said Friday.
“The recovery has not been derailed, but it’s slow,” said Michelle Meyer, an economist at Bank of America Merrill Lynch. “We’re still in a muddle-through period.”
Only 54,000 jobs were created in May, the fewest in eight months.
By contrast, an average of 220,000 jobs were created in each of the previous three months. Private companies hired only 83,000 workers in May — the fewest in nearly a year — while state and local governments cut 30,000 jobs.
The Dow Jones industrial average finished down 97 points, its third straight loss. The Dow, Standard & Poor’s 500 and Nasdaq composite have all declined in each of the past five weeks, the longest losing streak since mid-2008.
Several chronic problems are weighing on the economy. Home prices are still falling. The average worker’s pay isn’t keeping up with inflation. Cutbacks in spending by state and local governments are contributing to slower growth, even in the private sector. And members of Congress are preparing to cut spending.
Gas prices approached $4 a gallon this spring. They’ve declined to about $3.79 and are expected to fall more, possibly freeing consumers to spend more on goods such as cars, appliances and furniture. Consumer spending accounts for about 70 percent of the economy.
But even if gas prices dip, they’ll likely remain high and continue to squeeze consumers and the industries that depend on them. For example, companies that rely heavily on motorists — hotels and restaurants — cut employment in May.
Even economists who think hiring will pick up don’t expect it to grow very fast.
Heidi Shierholz, an economist at the liberal Economic Policy Institute, expects employers to add about 150,000 jobs a month for the next few months. Up to 300,000 new jobs a month would be needed to significantly drive down the unemployment rate.
Some bright spots did emerge in the May report. Professional and business services added 44,000 jobs, most in accounting, information technology services and management.
David Kelly of JPMorgan notes that large businesses remain flush with cash. Developing economies such as China and Brazil are still growing briskly and buying more U.S. goods.
