The Labor Department also says the economy created far fewer jobs in the previous two months than first thought. It revised those figures down to show 49,000 fewer jobs created. The unemployment rate rose to 8.2 percent from 8.1 percent in April, the first increase in 11 months.
Dow Jones industrial average futures, which were already down 100 points before the report, fell an additional 100 points within minutes of its release.
The yield on the benchmark on the 10-year Treasury note plunged to 1.46 percent, the lowest on record, suggesting investors are flocking to the safety of U.S. government bonds
The economy is averaging just 73,000 jobs per month over the past two months — roughly a third of jobs created per month in the first quarter.
Weak job growth could damage President Barack Obama's reelection prospects. Mitt Romney, the Republican challenger, has made the economy the central theme of his campaign.