June Sees 62,000 Fewer Jobs, Unemployment Rate Remains Steady
For a sixth consecutive month U.S. employers cut jobs in June, with soaring fuel prices and a slowing economy forcing companies to reduce costs.
According to the Labor Department, payrolls fell by 62,000, close to economists' median forecast, after a 62,000 drop in May that was greater than initially reported. The jobless rate remained at 5.5 percent after jumping in May by the most in two decades.
Job losses, along with record gasoline prices and tumbling home values, make it more likely consumer spending will falter once the lift from federal tax rebates fades. A weakening labor market may also prompt Federal Reserve policy makers to put off their first interest-rate increase since 2006.
"The job market remains weak and will probably stay weak for a while,'' said John Silvia, chief economist at Wachovia Corp. in Charlotte, North Carolina. "The Fed is still on inflation watch, but the price pressures from commodities have not moved into the wage-setting process,'' helping to limit price pressures, he said.
Published on July 3, 2008
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