As another economic figure points to a continuing slowing slow-down. Non-Farm Payrolls for May reported a loss of 345,000 jobs which was lower than expected. Analysts and economist point that a good explanation for this is the rise in part time work which took people out of unemployment. The pace at with the US Economy is losing jobs is at its lowest after 8 months. The unemployment rate did climb to 9.4%, the highest in 25 years and could reach 10% by year’s end as more people look to join the workforce.
Six million jobs have been lost since the start of the recession. GM and Chrysler reorganization will take its toll on next month’s figures. The market perceived the NFP report as a positive sign that the end of the recession is coming as firings stabilize along with house prices. The hardest hit sectors in the economy continue to be manufacturing (156,000), construction (59,000) and services (120,000).