Insufficient Jobs Set the Stage for Slowdown in U.S. Recovery

The U.S. recovery is poised to slow in the second half of 2010 after smaller-than-forecast growth in private payrolls for June capped a month of data indicating weakness in industries from housing to manufacturing.

Employment fell by 125,000 workers, the first drop this year, reflecting government census cutbacks, while companies added 83,000 to payrolls, Labor Department figures in Washington showed yesterday. Reports last month showed a plunge in home sales, a slump in consumer confidence, cooler manufacturing and less growth in the first quarter.