June Jobless Rate Hits 9.5%, a 26-Year High

363K job cuts predicted
By Newser Editors and Wire Services
Posted Jul 2, 2009 8:17 AM CDT
In this June 30, 2009 photo, job seekers are helped with their resumes at a job fair in San Jose, Calif.   (AP Photo/Paul Sakuma)
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(Newser) – Employers cut a larger-than-expected 467,000 jobs in June, driving the unemployment rate up to a 26-year high of 9.5% and suggesting that the economy's road to recovery will be bumpy. The Labor Department report released today, which shows 100,000 more jobs shed than expected, indicates that even as the recession flashes signs of easing, companies likely will want to keep a lid on costs and be wary of hiring until they feel certain the economy is on solid ground.

Many economists predict the jobless rate will hit 10% this year and keep rising into next year before falling back. The deepest job cuts of the recession came in January, when 741,000 jobs vanished, the most in any month since 1949.