Employers Slash More Jobs in June

In what underscores an unsteady job market, employers cut 62,000 jobs in June, the sixth straight month of job losses. The Labor Department also reported that the unemployment rate held steady at 5.5%. Heavy job losses in construction, manufacturing and financial services, the result of a prolonged housing slump and credit crunch, along with cutbacks in retailing, overshadowed job gains in education and health services, leisure and hospitality, and government. In addition, job losses in both April and May turned out to be considerably deeper than had been thought. Payrolls dropped by 67,000 in April, versus the 28,000 previously reported, while job cuts in May came to 62,000, rather than the 49,000 initially projected. Many economists expect the unemployment rate to hit 6% or higher by early next year, as companies hold off on hiring, or cut back, until they feel certain the economy is ready to bounce back.

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Date Last Updated: 07/08/2008