By: Shobhana Chandra
Source: bloomberg.com
There is little evidence that President Obama’s stimulus effort is having any effect on the labor market as employers in the U.S. cut some 467,000 jobs in June, more than analysts had forecast.
The payroll decline was more than forecast and followed a 322,000 drop in May, according to Labor Department figures released today in Washington. The jobless rate jumped to 9.5 percent, the highest since August 1983, from 9.4 percent.
Unemployment is projected to keep rising for the rest of the year just as the income boost from the stimulus package fades, undermining prospects for a sustained rebound in household purchases, analysts said. As companies from General Motors Corp. to Kimberly-Clark Corp. cut costs, the lack of jobs will limit any recovery.
Payrolls Fall More Than Forecast, Unemployment Rises
