Unemployment Rate Hits 9.5 Percent As Economy Sheds 467,000 Jobs In June

The U.S. economy lost 467,000 jobs in June as the national unemployment rate rose to 9.5 percent, the government announced on Thursday morning. While that's only one-tenth of a percentage point from May, the current rate is the highest rate in 26 years.

Heidi Shierholz, an economist with the Economic Policy Institute, said that the loss of 6.5 million jobs since the start of the recession combined with the growth of the workforce means that the gains of the previous business cycle have been completely blown away.

"This is the only recession since the Great Depression to wipe out all jobs growth from the previous business cycle, a devastating benchmark for the workers of this country and a testament to both the enormity of the current crisis and to the extreme weakness of jobs growth from 2000-2007," said Shierholz in a statement.

The ranks of the long-term unemployed -- people out of work for 27 weeks or more -- grew by 433,000 in June to a total of 4.4 million. Three in 10 of the unemployed are now long-term unemployed. The collapse of the housing industry contributes to their plight.

"We know right now because of the housing crisis that people can't move to find another job," Shierholz said. "People that in previous recessions may have been able to relocate to find another job can't now."

The Huffington Post has been profiling people who've been out of work for long periods of time. Marvin Bohn of Ohio hasn't worked for a year and has been paying for his meds out-of-pocket. Steve Dittmann of Kansas said of the unemployed life, "I feel like I'm on the other side of a Plexiglass wall looking in."

A broader measure of labor underutilization that accounts for people who've stopped looking for work hit 16.5% in June, a 0.1 percentage point increase.

"In June, there were large decreases in manufacturing, construction, and professional and business services," said Bureau of Labor Statistics Commissioner Keith Hall in a statement. "Together, these three sectors have accounted for nearly three-quarters of the jobs lost since the recession began.

Many economists have predicted that even when the recession is technically over with the economy beginning to expand, there will be a "jobless recovery" as unemployment hovers in the double-digits.

HuffPost readers: Have you joined the ranks of the long-term unemployed? Tell us about it -- email [e-mail].

Comments

[tanktop4158]

After reading the many comments from the Obama-bots here they still dont seem to understand that Obama Marxist ideas just are not working. Will they still be blaming Bush for rising unemployment long into Obama's continued destruction of capitalism in the U.S. by Obama's Marxist solutions?
I dont think one Obamabot here really understands free market economics and how Obama is destroying them. I really think they could benefit from a basic course in economics, as after reading their many points they seem to confuse the two sciences of politics and economics.
If my fellow Americans belive all the Obama Marxists rhetoric spun by the Obamabots here they will surely deserve all the hardship that Obamas continued plans for the economy of government ownership of the private sector....­...well they certainly deserve all the misery this will bring!

[tanktop4158]

After reading the many comments from the Obama-bots here they still dont seem to understand that Obama Marxist ideas just are not working. Will they still be blaming Bush for rising unemployment long into his continued destruction of capitalism in the U.S. by Obama's Marxist solutions?
I dont think one Obamabot here really understands free market economics and how Obama is destroying them. I really think they could benefit from a basic course in economics, as after reading their many points they seem to confuse the two sciences of politics and economics. They are after all two seperate sciences in higher education, but every point they seem to make here is purely political and nothing to do with economics as a serious study.
If my fellow Americans belive all the Obama Marxists rhetoric spun by the Obamabots here they will surely deserve all the hardship that Obamas plans for the economy of government ownership of the private sector....­...well they certainly deserve all the misery this will bring!

[tanktop4158]

I can not believe there are so many Obamabots here that can not realize yet that Obama's Marxist plans still are not working...­..will they still be blaming Bush (for high unemployment) after Obama has completly destroyed captilism in america?
I really wish these Obama-bots would take a basic college course in, 'free market economics' because they are clearly clueless of basic economic concepts after I read through their purely political comments on the economy. Economics and political science are two different sciences, but to an Obama-bot they are clearly the same.
I think this country will deserve all the hardship that Obama government ownership of the private sector will bring my fellow Americans.

[themodernleader]

PartyPartyParty. If you are right that the entire system is corrupt, the first change is competent, corurageous leadership in the top position. President Obama must exhibit integrity, honor, fairness, openness, wisdom (stemming from the Constitution, Bill of Rights and Declaration of Independence) and courage. Over a period of time the other leaders of our land will begin to behave in the same manner. Then the common interests will come to the top. And great leadership will replace ignominious and incompetent leadership.

[JRambo]

This is bad, but about what I expected. We'll start to see real recovery in 2010. People are saving more, which is good. Personally, I'm buying -- stocks, houses, whatever with savings. The key to success is to buy when people are selling and sell when people are buying. Hopefully, people learned a lesson here. I'm not sure why they didn't learn in the S&L scam or the .com bubble.

This isn't a political problem, politics/government pay a very small role here. This is a stupid American problem. Americans were living beyond their means. It all had to come to an end at some point. If it didn't, I would begin to fear that the system doesn't work.

[CarolinaDem]

It most certainly has been a government problem, because the government has driven wages down, held interest rates low and loudly explained that everybody needs a college degree to raise a family, while letting a few lobbying powers keep personal necessaries like health care skyrocket. "Living beyond your means" was the alterantive not to living 'within' them but to not making it all. Only a fool would have chosen not to borrow. The real fools were those who elected Republicans and Clintons and thought it would help any but the wealthy. Probably you're wealthy, so you're no fool. Just a jerk.

[hhayden]

It would help if our choices for candidates weren't bad and worse and we didn't have an election system based on payoffs and paybacks

If it were up to me, a lobbyiest wouldn't be allowed within a hundred miles of Washington. State Capitals too. And there would be severe penalties if a public official too so much as a parer clip if an official capacity.

[Raster]

Obama was way short with his "stimulus" program, unless you are in construction business. Paul Krugman called it right back in Feb-Mar when he said Obama's policy was woefully short of what's needed. We're going to need a 21st century WPA (Work Programs Administration) to put enough people back to work.

[hhayden]

Sure, cure a governmental mess with a bigger governmental mess.

The solution is to have a robust (Full of health and strength; vigorous) private sector not more government employees.

[CAP6]

It seems to me we must come to the realization we as a country have made some critically fundamental mistakes over the last 30 years or so and begin to reset our economy on the foundations on which to build long-term sustainable economic growth. We have exported most of our manufacturing and industrial infrastructures, a huge portion of the science and technology sectors, and are now becoming a significant importer of the the most critical commodity of all, food. Now we are sitting back and waiting on the government to provide the answers for a crisis the government is largely responsible for creating and worse, we are looking for solutions from the very individuals some say are principally culpable for helping to create this crisis. We can choose to continue down the path our leaders have chosen for us and that is to continue spending and borrowing our way to economic ruin while the "official" unemployment rate soars past 10% on it's way to some dangerous & historical high or we can learn to EARN our way out of this crisis. We must invest in ourselves by investing our limited resources into our remaining manufacturing and industrial infrastructures, while striving to expand both. Think about it, China has become our banker on the back of it's manufacturing infrastructure and exports. Time to return to economics 101 and make our best effort not to fail this time. This is not about Democrats or Republicans, it's about us, Americans all.

[hhayden]

Some good sense on our Nations Birthday. Thanks.

[CAP6]

Happy 4th to you as well my friend.

[CarolinaDem]

That's nice but that simply assumes that some quality of allegiance to country and people will at some point overrule the profit-maximizing motive of executives and investors. You think 'we' sent our furniture industry to China using profit from skilled American productivity to build factories and then, when they had approximated the quality, suddenly pitching all American workers to the gutter? It happened over and over again and we who objected were told to put on our grown up pants and accept the reality of globalization.

[CAP6]

I understand your reasoning, but if we (the taxpayers) ARE the investors in our reinvigorated manufacturing, agricultural, and green energy infrastructures, I AM confident we will choose to purchase our products from ourselves and thus, permitting us the opportunity to sell those same products in the world markets.

[hhayden]

So, we should just give up on the great gift that our Founding Fathers fought and died for and bestowed on us? I don't even own a white towel. I don't want to ruin the Nation to get back at a relative handful of people who can make more money than they are worth. Should the government set the salaries and run the careers of Hollywood "Stars", Reality Show producers and Sports figures? We will have factories in the US when we do a better job at a competitive price and not before. It woun't happen with an endless array governmental road blocks

[GeeBee77]

Simon Cowell will be making $144,000,0­00.00 a year on American Idol. And the rest of us work for minimum wage-- if we're lucky enough to have jobs... You gotta love this country!

[hhayden]

Only 2.2% of all hourly workers earn minimum wage or less. Do you work at Burger King or KFC?

[wingnutgator]

the real # is probably 15% when you count all the independent contractors, realtors, small business owners, etc who are out of work and cannot qualify for unemployment. not to mention all the people who have run out of benefits or taken part time work to survive. the stimulus is doing nothing for the small businesses in this country which are the largest employers and the largest generator of jobs. the dem stim was nothing more than a transfer payment to the states to keep state employees from losing jobs. just a payoff for the service employee union support that will do nothing to create private sector jobs. enjoy your jimmy carter deja vu while it lasts. when we have 15% official unemployment and unofficial over 20% next year, you will see a major political sea change.

[hhayden]

True. The government hides the true facts knowning the Obamatrons will not investigate.

[JRambo]

We can't blame Obama for how the numbers are reported, it has been done this way for a long time. I'm not sure why people think that one man, Obama, can't fix problems that have been compounding since Reagan. The fact that Reagan ignored energy is a huge factor in where we are today. Perhaps 9/11 wouldn't have happened if we weren't so dependent on oil.

It amazes me how quickly people are turning on Obama. I hope people at least give him two years, or half a term before judging him.

[Concerned American99]

The Scariest Jobs Chart Ever

The chart in the link below, from Calculated Risk, shows the percentage decline in jobs from peak employment in all the recessions since World War 2.

We still haven't quite eclipsed the 1948 drop, but we likely will in another month or two. And that will leave only the Great Depression to make us feel better about ourselves.

The good news in the chart, such as it is, is that employment can recover quickly once it finally turns. Anyone care to place a bet as to when that will be?

http://www.businessinsider.com/henry-blodget-the-scariest-jobs-chart-ever-2009-7

[hhayden]

Nothing to worry about. Our Dear Leader has promised that unemployment will top out at 8%.

[JRambo]

There is no doubt he needs to stop talking. Unfortunately, that is politics. Remember, Obama didn't get us into this mess. And do you think McCain/Palin would be doing better now?

[brownstoness]

FINANCIAL INDEPENDENCE DAY - STARVE THE BEAST

We're udnergoing a delveraging process. Expect the DJIA to bottom at 5000 or lower.

Americans are starting to come to their senses. The savings rate reached 6.9% last month,
the highest level in 15 years. This brought the level up to the long-term average. As usual,
the pundits on CNBC have concluded that now that we've reached the average, everything is
roses and the consumer can resume their free spending ways and save our economy. These fools
have no concept of history, averages or cycles. The savings rate has been in a downward
spiral for 30 years. Consumers have lost $14 trillion of net worth and 5,000 per day turn
65. Most people have miniscule retirement savings and 14.7 million are unemployed. The
savings rate will go up for the next two decades as people must save.

hat tip to: http://iamned.blogspot.com 4 the good articles

[hhayden]

I turn 65 this month. I lost most of my 401K in the last down turn, but I'm not bitter. I learned self reliance as a youth and it serves me well. If our government had learned to save when times were good instead of spending like madmen (And mad women, lets not forget them) we'd be in the enviable position Norway enjoys today.

[kepary]

TAX the workers

[Fabini]

There are so few left to tax. Let's sell their shoes to Africa.

[hhayden]

Nice thought, but 9% unemployment meand 91% employment. A more heartening figure.

[kepary]

throw more money at the problem

[hhayden]

Good idea, but we'll need more presses. That means more jobs that Our Dear Leader can take credit for.

[kepary]

the Obama depression

[JRambo]

I guess you could call it the "Obama" depression. But... He didn't cause it, he just inherited it. I don't like a lot of what is going on, but I don't hear other ideas. Obviously, tax cuts for the wealthiest and deregulation didn't get us where we needed to be. So what is the solution?

[hhayden]

Less emphasis on government and more on the people. Reward innovation and hard work, not just look for ways to tax it. Tax cuts are for everyone not just the rich. Tax cuts do more to "stimulate" people then short term make work programs. Tax cuts did not provoke our current situation, government practices on both sides of the aisle did. Tax cuts did not make liberal congressman force banks to make bad loans. In Texas terms, "You should dance with the guy who brung ya". We didn't get where we are as a country through dint on an ever expanding and oppressive government. Don't buy into class warfare.

[isis]

In my area, a company fired a whole bunch of people and then the CEO made 6 million in pay.

[Fabini]

A whole bunch of people should apply for the CEO's job.

[hhayden]

Good one.