Jobs shed in June point to weak recovery

WASHINGTON, July 2 (UPI) -- The U.S. Labor Department said the unemployment rate fell to 9.5 percent in June, but weak hiring and a decline in jobs point to a weak recovery.

The private sector added 83,000 jobs, but losses overall totaled 125,000 jobs as 225,000 temporary jobs with the U.S. Census Bureau came to an end.

Economists expected 110,000 private sector jobs to be added and they won't be fooled -- or encouraged, either -- by temporary jobs that skewed the numbers for the second consecutive month.

In Washington, President Barack Obama compared 600,000 jobs added in the past six months to 3.7 million lost in the first six months of 2009 and said, "Make no mistake about it: We're headed in the right direction."

However, he said, "We are not headed there fast enough for a lot of Americans."

White House economic adviser Chritina Romer said the numbers show a "gradual labor market recovery," but added the unemployment rate fell due to a large number -- more than 600,000 -- dropping out of the workforce, too discouraged to look for work.

In June, temporary private-sector positions increased by 21,000. Professional business service jobs rose by 11,000. Business consulting jobs rose by 7,000.

Healthcare and manufacturing each added 9,000 jobs and mining added 6,000 in June.

The average workweek fell marginally, down 0.1 hour to 34.1 hours. Average hourly earnings rose fell by 2 cents to $22.53 per hour.