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467,000 jobs cut in June; unemployment at 9.5%

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The Associated Press

Published: July 3, 2009

WASHINGTON - Employers cut a larger-than-expected 467,000 jobs in June, and the unemployment rate climbed to a 26-year high of 9.5 percent.

Workers also saw weekly wages fall, suggesting Americans will have little appetite to spend and the economy's road to recovery will be bumpy.

The Labor Department report, released Thursday, shows that as the recession flashes signs of easing, companies likely will want to keep a lid on costs and be wary of hiring until they feel certain the economy is on solid ground.

President Barack Obama, in an interview with The Associated Press, said he is "deeply concerned" about unemployment and conceded that too many families are worried about "whether they will be next" to suffer an economic blow. He also expressed disappointment over the weak employment figures, acknowledging that "what we are still seeing is too many jobs lost."

June's payroll reductions were deeper than the 363,000 that economists expected, and the average weekly earnings dropped to the lowest level in nearly a year.

However, the rise in the unemployment rate from 9.4 percent in May wasn't as sharp as the expected 9.6 percent. Still, many economists predict the jobless rate will hit 10 percent this year and will keep rising into next year before falling back.

A total of 14.7 million people were unemployed in June.

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