"The May jobs report indicates growth could be even slower in the second quarter, and the economy is dangerously close to stalling and falling into recession," said University of Maryland economist Peter Morici.
There were also concerns that the labor report foreshadowed a summer economic swoon amid fears Europe's financial crisis will hit the United States, where the stock market has already been reeling.
"The worst part about this jobs report is that it was the last chance for a decent report before the full consequence of the slow-moving European implosion really starts to influence the global and economies," said Matt McDonald, an analyst at Hamilton Place Strategies.
