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* May U.S. non-farm payrolls well short of expectations
* China PMI falls
* Futures off: Dow 203 pts, S&P 23.8 pts, Nasdaq 42.5 pts
By Chuck Mikolajczak
NEW YORK, June 1 (Reuters) - Wall Street was set to tumble on Friday after U.S. jobs growth showed an anemic addition to the workforce, compounding worries over soft Chinese factory data and triggering fears of global recession.
The Labor Department said employers created a paltry 69,000 jobs last month, the weakest in a year, and the unemployment rate rose to 8.2 percent. Economists polled by Reuters had expected non-farm payrolls to increase 150,000.
China's economy showed signs of a broadening slowdown as its official purchasing managers' index fell to 50.4 in May from April's 13-month high of 53.3, signaling a deeper-than-forecast deterioration in demand at home and abroad.
"It's a continuation of the slowdown in the economic numbers we've been seeing domestically over the last couple of months," said Darrell Cronk, regional chief investment officer for Wells Fargo Private Bank in the Northeast, in New York.
"I would expect a relatively ugly day in the markets."
S&P 500 futures fell 23.8 points and were well below fair value, a formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract. Dow Jones industrial average futures dropped 203 points, and Nasdaq 100 futures lost 42.5 points.
In Europe, Markit's Eurozone Manufacturing Purchasing Managers' Index dropped to 45.1 in May from 45.9 in April.
Banking shares dropped in premarket, with JPMorgan Chase & Co down 2.4 percent to $32.34 and Banc of America Corp down 3.1 percent to $7.12. The Select Sector SPDR Financial ETF lost 2.2 percent.
Investor concern has been rising about the stability of Spain's banking system and the euro zone as a whole, at the same time U.S. data has shown tepid economic growth.
The worries sent the benchmark S&P 500 index down 6.3 percent in May and investors fleeing to safe-haven government securities.
European shares fell to a fresh five-month low on growing signs that the debt crises in Spain and Greece were hurting the region's biggest economies. The FTSEurofirst 300 index was down 2.3 percent.