Unemployment in the US surged to a nine-year high in June, according to a report out today from the Labour Department. The jobless rate soared to 6.4pc in June from 6.1pc in May, with 30,000 Americans laid off during the month and a total of 100,000 in the past two months alone. The US economy has lost 394,000 jobs since January and more than 2.5 million over the past two years. In June, 9.4 million Americans were looking for work.
The rise was unexpected and to make matters worse, today's report said that payrolls fell 70,000 in May instead of the originally reported 17,000 drop. A consensus of analysts and economists had forecast payrolls to remain unchanged in June. The latest figures cast doubt on hopes that the US economy is set for a rebound. Worried about the lacklustre state of the economy and in an effort to stimulate investment and consumer demand, the Federal Reserve last week cut short-term interest rates to 1pc, the lowest since 1958. Among the sectors that contributed to the decline in payrolls were manufacturing, which fell 56,000, and IT industries, which shed 10,000 jobs.//www.fxcentre.com