The US unemployment rate fell to 9.5% in June, despite the economy shedding 125,000 jobs, the US Labor Department said today. The unemployment rate was down from 9.7% in May, but jobs were lost for the first time this year. The figures will come as a blow to US President Barack Obama who has identified job creation as a key priority. Non-farm payrolls dropped 125,000, the largest decline since October, as temporary census jobs fell 225,000, the US Labor Department said today. Analysts polled by Reuters had expected employment to fall 110,000 last month, with the jobless rate edging up to 9.8% from 9.7% in May. The government revised data for April and May to show 25,000 more jobs created than earlier reported. Private employment, considered a better measure of labour market health, rose 83,000 in June, less than market expectations for a 112,000 gain.