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US employers cut 62,000 jobs in June amid recession fears

(Xinhua)
Updated: 2008-07-04 10:00

WASHINGTON - US employers cut their payrolls by 62,000 in June, the sixth straight month of nationwide job losses, as fears of a recession have grown, the Labor Department reported Thursday.

US employers cut workers from their payrolls for the sixth straight month in June for the longest losing employment streak since 2002, government data on Thursday showed. [Agencies]

The Department said hiring last month in goods-producing industries fell by 69,000. Within this group, manufacturing firms shed 33,000 jobs. Construction employment was down by 43,000 jobs.

Related readings:  American Airlines to cut 7,000 jobs  Starbucks to cut up to 12,000 jobs Reports: Siemens to cut 17,200 jobs

Service-sector employment climbed by 7,000 jobs. Professional and business services lost 51,000 jobs. Health care employment grew by 15,000 jobs. Government added 29,000 jobs.

The unemployment rate jumped in May to 5.5 percent, the highest level since October 2004. So far this year, the economy has lost a total of 438,00 jobs, an average of 73,000 a month.

Workers with jobs saw modest gains last month.

Workers' average hourly earnings rose by 0.3 percent in June to18.01 dollars. The rise was in line with economists' forecasts. Over the last 12 months, wages have increased by 3.4 percent.

The health of the job market is critical for the overall economy to grow. The worry is that companies, affected by a severe housing slump and a persisting credit crunch, might cut back on hiring further.

Analysts now expect the unemployment rate to climb to 6 percent or higher early next year.