Unemployment Rate Jumps to 9.4%, but Pace of Layoffs Slows
The U.S. unemployment rate shot up to 9.4% in May, the Labor Department reported, as companies showed little interest in hiring. However, the pace of layoffs slowed, with employers cutting 345,000 jobs, the fewest since September. The reduction in payroll jobs, which was smaller than many analysts expected, signals that the recession is loosening its grip on the nation. It was the fourth straight month that the pace of layoffs has slowed. However, the increase in the rate of unemployment from an 8.9% rate in April underscores how difficult it is for people who have been laid off to find new work. Analysts note that companies will be reluctant to hire until they are certain that economic conditions are improving and that a sustainable recovery is taking place. Since the recession began in December 2007, the economy has lost about seven million jobs. In May, construction companies cut 59,000 jobs (down from 108,000 in April), factories cut 156,000 positions, retailers cut 17,500 jobs, financial firms cut 30,000 and the government reduced employment by 7,000. Education, health care, leisure and hospitality were among the industries adding jobs in May.
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Date Last Updated: 06/10/2009
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