Jobless rate hits 9.5 percent
Figure not quite as bad as many expected
July 2, 2009, 9:10 a.m.
STAFF REPORT
Employers cut 467,000 jobs in June, driving the unemployment rate up to a 26-year high of 9.5 percent.
The Labor Department report released Thursday showed that 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.
June's payroll reductions were deeper than the 363,000 that economists expected.
But the rise in the unemployment rate from 9.4 percent in May wasn't as sharp as the expected 9.6 percent.
Many economists predict the jobless rate will hit 10 percent this year, and continue to climb into next year before falling back.
All told, 14.7 million people were unemployed in June.
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 record dating to 1994.