Business | Economy
US unemployment data sends better than expected signals
March and April job losses revised down to show smaller declines.
- Reuters
- Published: 23:43 June 5, 2009
Washington: US employers cut 345,000 jobs last month, the fewest since September and far less than forecast, according to a government report yesterday that was more evidence the economy's severe weakness was diminishing.
However, the Labour Department said the unemployment rate raced to 9.4 per cent, the highest since a matching rate in July 1983, from 8.9 per cent in April.
March and April's job losses were revised down to show a smaller declines of 652,000 and 504,000, respectively.
Analysts polled by Reuters had forecast non-farm payrolls dropping 520,000 in May. The unemployment rate had been forecast to rise to 9.2 per cent.
While the job losses in May were spread across almost all sectors, the pace of layoffs was slower than in prior months.
Payrolls in construction industries fell 59,000 after dropping 108,000 in April, likely as a result of the government's historic $787 billion stimulus package.
The service-providing industry shed 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.
Share this article
Popular in Business
-
Property
Burj Khalifa effect
Proximity to the world's tallest tower proves advantageous for hotels
Business Editor's choice
-
Mandarin Oriental set for UAE footprint
New hotel is the group's first venture in the Middle East and will be built on Saadiyat Island
-
US needs dynamic policies
Efforts to revive domestic growth will lead return of financial sector distortions and imbalances
-
Unique system deflects lightning from Burj Khalifa
$30,000 installation at tower's tip emits charge to nullify threat
