June 5, 2009 - 9:51am
US government report released Friday showed that American employers cut 345,000 jobs last month, the fewest since September and far less than forecast which is considered as additional evidence the economy's severe weakness was diminishing.
Still, the unemployment rate reached 9.4% the highest since a matching rate in July 1983, from 8.9% in April, according to the Labor Department report. March and April's job losses were revised down to show a smaller declines of 652,000 and 504,000, respectively.
The job losses in May occurred across almost all the sectors but the pace of layoffs still was slower than in previous months.
The report reveals that payrolls in construction industries fell 59,000 after dropping 108,000 in April, which is ascribed to the government's $787 billion stimulus package. The service-providing industry decreased by 120,000 positions after eliminating 230,000 in April.
The manufacturing sector purged 156,000 jobs in May, likely reflecting auto plant shutdowns in the wake of Chrysler's bankruptcy filing. The sector shed 154,000 in April.
Education and health services sector payrolls expanded by 44,000 after increasing 13,000 the prior month. Government, which in April added 92,000 jobs, mostly related to preparations for the 2010 census, cut 7,000 positions in May.
Still, the unemployment rate reached 9.4% the highest since a matching rate in July 1983, from 8.9% in April, according to the Labor Department report. March and April's job losses were revised down to show a smaller declines of 652,000 and 504,000, respectively.
The job losses in May occurred across almost all the sectors but the pace of layoffs still was slower than in previous months.
The report reveals that payrolls in construction industries fell 59,000 after dropping 108,000 in April, which is ascribed to the government's $787 billion stimulus package. The service-providing industry decreased by 120,000 positions after eliminating 230,000 in April.
The manufacturing sector purged 156,000 jobs in May, likely reflecting auto plant shutdowns in the wake of Chrysler's bankruptcy filing. The sector shed 154,000 in April.
Education and health services sector payrolls expanded by 44,000 after increasing 13,000 the prior month. Government, which in April added 92,000 jobs, mostly related to preparations for the 2010 census, cut 7,000 positions in May.