US Sheds 345,000 Jobs in May

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The US labor sector shed 345,000 jobs in May which is lower compared to 504,000 in April. Meanwhile, the Labor Department said that there are 14.5 million displaced workers, pushing the joblessness to 9.4 percent in the US.

According to analysts, the unemployment rate is expected to increase to 10.8 percent in 2010.

As a sign of improving economy, the labor sector shed 345,000 jobs in May which is the lowest rate since September 2008. However, the Department of Labor on Friday said that while fewer people have been laidoff last month, there are currently 14.5 million displaced workers which pushed the unemployment rate in the US to 9.4 percent.

According to some analysts, the number of displaced workers in May is considered fewer compared in April when more than 504,000 people have lost their jobs.

While companies had stopped laying off workers, a government data also showed that less employees were hired in May, a sign that businesses were still reluctant over the economy’s condition.

With this ongoing trend, analysts predicted that unemployment rate will reach to 10.8 percent in 2010 while the economy is in the process of recovering from its losses.

Meanwhile, experts said that companies will start to hire more workers in the last quarter of 2010 and will continue to the next year until the labor market bounce from the recession.

In a statement, Labor Secretary Hilda Solis said that the high unemployment rate in the country is unacceptable and added that the government is taking immediate solutions to help displaced workers by giving them short courses and training.

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US Sheds 345,000 Jobs in May

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