Reporting from Washington — The nation's unemployment rate edged up to a 26-year high of 9.5% in June as employers slashed nearly half a million jobs over the month across a wide spectrum of industries, the Labor Department reported today.
The disappointing report provided fresh evidence that the jobs market remained deeply troubled despite signs in recent weeks that the economy was climbing out of its worst recession since the Great Depression.
June's jobless rate rose just a notch, from 9.4% in May, a much smaller pace of increase than in recent months. But it appeared more discouraged workers had dropped out of the labor force. The unemployment rate for men reached 10%.
Since the recession began in December 2007, the ranks of unemployed has doubled to 14.7 million, and the number of long-term unemployed swelled by 433,000 over the month to 4.4 million, the Labor Department said.
Analysts had expected the economy to lose about 350,000 jobs in June, about the same as in May and half the number of payrolls shed in December. But payroll employment fell by 467,000, with every major sector down, with the exception of health and education services, which added 34,000 jobs over the month.
Manufacturing employment continued to sink, dropping another 136,000 payrolls, as the the battered auto industry closed factories. Professional and business services eliminated 118,000 positions, retail trade lost 21,000 jobs, and even government, which had been one of the bright spots in this recession, thinned its rolls by 52,000 as many states, notably California, grappled with a severe budget crisis.
The latest report suggested that it will be a long, tough slog for unemployed workers. Though their jobless benefits have been extended, in many cases up to a year, there are few signs that employers are hiring.
In another troubling sign, the Labor Department said, the average weekly hours of work in June dropped to 33, a record low, reflecting the shortened hours and furloughs at some companies. That means employers, when they feel confident enough to hire again, will first raise the work hours of existing employees before adding new staff.
don.lee@latimes.com
