Unemployment hits record but job losses slow

Unemployment hits record but job losses slow

By Lucia Mutikani

WASHINGTON (Reuters) - The pace of U.S. job losses slowed sharply last month, the strongest sign to date that the recession is diminishing, even as the unemployment rate hit its highest in nearly 26 years.

The Labor Department said on Friday that U.S. employers cut 345,000 jobs in May, the fewest since September and far less than economists had forecast, after slicing 504,000 in April.

The unemployment rate raced to 9.4 percent, however, the highest since July 1983, from 8.9 percent in April, partly reflecting a surge in people entering the labor force.

"It keeps hopes alive for a full recovery in the U.S. economy by the second half. It's a step in the right direction," said John Canally, investment strategist and economist for LPL Financial in Boston.

U.S. stocks pushed higher on the data, while bond prices fell and the dollar rose on the view the Federal Reserve -- the U.S. central bank -- may need to begin withdrawing its extraordinary monetary support for the recession-pummeled economy before year-end.

The relatively small decline in payrolls, which beat market expectations for a 520,000 drop, sparked rumors in financial markets that the government had published incorrect figures, but Labor Secretary Hilda Solis dismissed the rumors as false.

The U.S. economic recession, now in its 18th month, is the longest since the Great Depression and has wiped out six million jobs. March and April data were revised to show 82,000 fewer jobs were lost in those months than previously reported.

BRIGHTER LIGHT

"The light at the end of the tunnel just got a lot brighter. May's employment report brings clear evidence that the labor market is beginning to stabilize," said Nigel Gault, chief U.S. economist at IHS Global Insight in Lexington, Massachusetts.

The report supported other surveys and a recent decline in new applications for unemployment benefits that appeared to back perceptions that the rate of layoffs was decelerating.

A raft of recent data -- from gains in home sales to rising consumer confidence -- has supported growing optimism that economic growth would resume in the second half of the year.

While the job losses in May were spread across almost all sectors, the pace of layoffs was slower than in prior months.

Construction jobs fell 59,000 after dropping 108,000 in April, likely as a result of the government's $787 billion stimulus package.

The service-providing industry shed 120,000 positions after eliminating 230,000 in April. Manufacturing purged 156,000 jobs in May, possibly reflecting auto plant shutdowns in the wake of Chrysler's bankruptcy filing. The sector shed 154,000 positions in April.

Education and health services payrolls rose 44,000 after increasing 13,000 the prior month. The leisure and hospitality industry added 3,000 jobs, having shrunk consistently.
Government, which in April added 92,000 jobs, mostly related to preparations for the 2010 census, cut 7,000 positions in May.

Since the start of the recession in December 2007, the economy has lost 6.0 million jobs, the department said.

The length of the average work week eased to 33.1 hours in May from 33.2 hours in April. Average hourly earnings climbed to $18.54 from $ 18.52 in April.

Views: 32

Comment

You need to be a member of 12160 Social Network to add comments!

Join 12160 Social Network

"Destroying the New World Order"

TOP CONTENT THIS WEEK

THANK YOU FOR SUPPORTING THE SITE!

mobile page

12160.info/m

12160 Administrators

 

Latest Activity

Doc Vega commented on Doc Vega's blog post Grooming the New Generation of Assassins
"cheeki kea, I fear that we are headed further down the road of inhumanity institutionalized by the…"
5 hours ago
omegamann is now a member of 12160 Social Network
12 hours ago
Doc Vega commented on Doc Vega's blog post Three Must See Movies for Halloween
"cheeki kea Thanks. I watched most of the movie but I'd forgotten until a few minutes into it…"
16 hours ago
cheeki kea commented on Doc Vega's blog post Three Must See Movies for Halloween
"That's a fine movie menu you've got Doc V. I love the old days theme. Great to view when…"
21 hours ago
Doc Vega posted a blog post

Three Must See Movies for Halloween

Grab Your Popcorn and Settle In!  If you really want to get in the mood for Halloween and you like…See More
yesterday
Bob of the Family Renner posted photos
yesterday
Doc Vega posted a blog post

Terror on All Hallows Eve

Chapter IElizabeth was angry. All of her friends were going to be out on Halloween, but her. She…See More
Monday
Jeff favorited Jeff's profile
Monday
Jeff favorited Jeff's profile
Monday
Jeff favorited Doc Vega's profile
Monday
Jeff is now a member of 12160 Social Network
Sunday
Doc Vega posted blog posts
Friday
tjdavis posted a video

How Corporations Are Secretly Poisoning Our Food Supply

Dupont and 3M have been secretly poisoning America for decades. PFAs — also known as forever chemicals—are now in our food, water, clothes, and our blood. Th...
Oct 24
Doc Vega posted a blog post

They Won’t Stop

 The demonically driven left will not stop. Makes no difference how much violence they call for or…See More
Oct 22
Doc Vega posted a blog post

What US Scientist unwittingly helped the Nazis devise the V-2 Missile?

  In the early 1920’s and leading up to World War II German technology outpaces the peace time…See More
Oct 20
tjdavis favorited Sandy's video
Oct 19
tjdavis posted a photo
Oct 19
Christopher Walker is now a member of 12160 Social Network
Oct 19
tjdavis posted videos
Oct 19
Burbia commented on tjdavis's photo
Thumbnail

Reflection

"Let's see if this goes past indictment."
Oct 18

© 2025   Created by truth.   Powered by

Badges  |  Report an Issue  |  Terms of Service

content and site copyright 12160.info 2007-2019 - all rights reserved. unless otherwise noted