(PTI): The US Labor Department says after American employers laid off 467,000 jobs in June, the rate of unemployment has hit a 26-year high of 9.5 percent.
The department says in its latest report that despite signs of recovery in the recession-hit economy, companies will likely cut more jobs to cope with the recent economic meltdown.
The report added that 6.5 million Americans had lost their jobs since the beginning of the recession in December 2007.
Official figures also show that the number of workers filing claims for unemployment benefits decreased to 614,000 last week from 630,000 the week before.
All sectors including manufacturing, business services and construction shed their staff except education and healthcare, it said.
The US is bracing for an early double-digit rate of unemployment despite the approval of President Barack Obama’s multi-hundred-billion stimulus plan early this year.
Many analysts believe the jobless rate will pass 10 percent this year before falling back.
This will force Obama to face new challenges over the effectiveness of his economic policies, including the $787 billion stimulus plan and record investments in healthcare, alternative energy, education and job training.
Tags: 000 jobs, 26-year, 467, high unemployment rate, June, US Labor Department