U.S. Unemployment Surges to 9.4%

123jump.com Staff
05 Jun, 2009
New York City

The unemployment rate surged to 25-year high as manufacturing sheds jobs. The monthly job losses of 345,000 were less than half of the average in the prior six months. Healthcare is the only segment that added workers.

[R]10:30 AM New York – The unemployment rate surged to 25-year high as manufacturing sheds jobs. The monthly job losses of 345,000 were less than half of the average in the prior six months. Healthcare is the only segment that added workers.[/R]

The unemployment rate surged to 9.4%, the worst it has been in 25 years. Manufacturing continues to shed jobs as automobile and parts makers lay off workers. Declines in services and construction sectors have moderated.

In May payrolls declined by 345,000 to 132.2 million and the decline in the month was half of the average monthly decline in the last six months of 643,000.

Since the start of recession in December 2007, the number of unemployed has increased by 7 million and the unemployment rate has nearly doubled.

Only healthcare industry added jobs and employment in government was unchanged. Healthcare added 24,000.

Manufacturing job losses were 156,000 in the month, 59,000 in construction and 51,000 and professional and business services.

Retail trade lost 18,000 jobs in the month and employment in wholesale trade declined 22,000. Financial activities shed 30,000 jobs, securities industry shed 10,000 and real estate lost 9,000.

Of the U.S. civilian labor force of 155.1 million, 140.6 million are employed, 14.51 are unemployed and 80 million are not in labor force.

The unemployment rate in April was revised to 8.9%.

In, May, Hourly earnings for production and nonsupervisory workers in the private sector were unchanged at $18.54.