Unemployment Rate Surges to 5.5 Percent

Washington, DC, June 6, 2008--Unemployment jumped to 5.5 percent in May, the biggest monthly rise in 22 years, as employers cut 49,000 jobs.

The unemployment rate jumped from 5 percent in April to 5.5 percent in May and was the highest jobless rate since October 2004.

Economists had expected unemployment to rise to 5.1 percent. The job loss figure was not as high as economists expected.

Employers now have cut payrolls for five straight months. Hard hit were jobs in manufacturing, construction, retailing and professional and businesses services.

The losses overwhelmed gains in the education and health fields, government and leisure and hospitality.

The government said the number of unemployed people grew by 861,000 in May to 8.5 million.

A year ago, there were 6.9 million unemployed people and the jobless rate was 4.5 percent.

Average hourly earnings for jobholders rose to $17.94 in May, up 0.3 percent from the previous month. Over the last 12 months, wages have grown by 3.5 percent..