Employers added 54K jobs in May, rate ticks up to 9.1 pct

WASHINGTON (AP) — Employers in May added the fewest jobs in eight months, and the unemployment rate inched up to 9.1 percent.

The weakening job market raised concerns about an economy hampered by gas prices and the Japanese nuclear disaster.

The key question is whether the meager 54,000 jobs added last month mark a temporary setback or are evidence of a more chronic problem. That total is far lower than the previous three months' average of 220,000 new jobs per month.

Private companies hired only 83,000 new workers in May — the fewest in nearly a year.

Stock futures plunged after the report was released.

Local governments cut 28,000 jobs last month, the most since November. Nearly 18,000 of those jobs were in education.

Cities and counties have cut jobs for 22 straight months and have shed 446,000 positions since September 2008.

The anemic pace of job creation presents a huge challenge to President Barack Obama's reelection prospects next year. And it followed a string of disappointing economic data in the past month that suggest the economy is hitting a soft patch after a strong start.