June's U.S. unemployment data 'sobering': Obama

Washington: The U.S. economy shed a surprising 467,000 jobs in June and the jobless rate climbed to 9.5 percent, in what President Barack Obama called a 'sobering' sign that the country's deep recession is far from over.

The Labour Department's report sent U.S. stocks plummeting more than 2 percent. Economists had predicted only 365,000 jobs would be lost, hoping June's figures would mirror a dramatic improvement in May.

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The unemployment rate climbed from 9.4 percent in May, when only 322,000 jobs were cut, and stands at its highest level in more than a quarter century.

The jobs report offered little comfort to investors looking for signs that the economy is stabilizing, and White House spokesman Robert Gibbs warned the jobless rate would "definitely" hit 10 percent before the crisis comes to an end.

"Our economy is still having a tough time getting moving," Obama said after a White House meeting with business leaders from the alternative energy sector.

Obama called it "a day of sobering news," but noted June's figures were still better than an average of 700,000 jobs lost in the first few months of the year.

The U.S. economy has now lost 6.5 million jobs since a deep recession began in December 2007, the worst 18-month stretch since 1939.

Manufacturing and construction continued to be some of the worst-hit industries in the country. Health care remained one of the few growth sectors.

"While there are continuing signs that the recession is slowing, obviously this is little comfort to all those Americans who have lost their jobs," Obama said. He touted "green jobs" as a means of putting the U.S. on a sounder economic footing.
Source: IANS