The Department of Labor reported today that employers cut a larger-than-expected 467,000 jobs in June, driving the unemployment rate up to a 26-year high of 9.5 percent, or 14.7 million unemployed last month. If laid-off workers who have given up looking for new jobs or have settled for part-time work are included, the unemployment rate would have been 16.5 percent in June, the highest on records dating to 1994. Economic recovery is clearly not around the corner.
The report showed that even 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 a solid ground. Large job cuts have continued this week. Newspaper publisher Gannett Co. said it plans to cut 1,400 jobs in the next few weeks, about 3 percent of the work force, as it faces a prolonged slump in advertising revenue. Farm machinery company Deere & Co. said 800 salaried employees, or 3 percent of its salaried work force, took a voluntary buyout offer.
Payroll employment declines continued to be widespread among the major industries. In June, there were large decreases in manufacturing, construction, and professional and business services. Together, these three sectors have accounted for nearly three-quarters of the jobs lost since the recession began. Continue Reading »