The Labor Department reported that nonfarm payrolls rose by just 54,000 in May, far below expectations for a gain of more than 150,000, and the jobless rate rose from 9.0 percent to 9.1 percent, adding to the recent gloom about the U.S. economy that, with each new report, appears to have entered a “soft patch” or, perhaps, something more serious.

Forecasts for job growth in May had been lowered after Wednesday’s survey from ADP showed only 38,000 private sector jobs created last month, however, even the new downwardly revised estimates were overly optimistic and total downward revisions to prior months data of 39,000 only adds to the concern about slowing growth in the U.S.

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Tomorrow’s monthly jobs report from the Labor Department has taken on gargantuan significance after the economic reports released so far this week, the bulk of which suggest that the economic recovery in the U.S. is quickly stalling (or much worse). Today, the Labor Department released the weekly jobless claims data and, as expected, the total stayed above the psychologically important 400,000 level for the eighth straight week.

Initial claims for state unemployment insurance fell less than expected, from an upwardly revised 428,000 to 422,000 for the week ending May 28th, and while a growing number of economists see slower growth ahead, an alternative view is that this is just a Japananese earthquake/tsunami induced blip, this case being made in this item over at Bespoke Investment Group.

The Commerce Department reported that the first quarter growth rate for the U.S. economy was unchanged at 1.8 percent in the second of three estimates for the period, but this morning’s bigger news was elevated jobless claims that have now exceeded the important 400,000 level for seven straight weeks as reported by the Labor Department.

Initial claims for unemployment insurance rose from an upwardly revised 414,000 to 424,000 for the week ending May 21st and the four-week moving average came in at 438,500, down slightly from the week before that marked the highest level since last November. Clearly, there are changes afoot in the U.S. labor market and, after this morning’s jobless claims number came in well above expectations of about 400,000, estimates will surely be revised lower for next week’s monthly jobs report.

It comes as no surprise that an increasing number of Americans want more jobs to stay in the U.S. rather than be shipped overseas, this Gallup survey making their preference clear.

We don’t seem to care much about “green” jobs anymore and, oddly, we seem to want more infrastructure work without having to pay for it via stimulus money.

As for more jobs staying in the U.S, it’s  hard to imagine how that’s ever going to happen when someone like GE CEO Jeffrey Immelt is heading up the President’s Council on Jobs and Competitiveness, two objectives that seem to be in conflict, though, on second thought, the location of the jobs isn’t specified in the council’s name.

The Labor Department reported that nonfarm payrolls rose 216,000 in March, following a gain of 194,000 in February, and the unemployment rate fell from 8.9 percent to 8.8 percent.

The household survey indicated that the labor force increased by 160,000 in March while employment grew by 291,000, producing the modest decline in the jobless rate, and the broader measure of underemployment (including discouraged workers and those settling for part-time work instead of full-time) fell from 15.9 percent to 15.7 percent.

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