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The U.S. unemployment rate jumped again in May but the pace of layoffs has eased considerably, both nationally and in Utah.
The country's jobless rate jumped to 9.4 percent in May, much above the 5.2 percent reported in April for Utah, whose official numbers for May won't be reported for another couple of weeks.
Although the U.S. number is the highest in more than 25 years -- reflecting the depth of the recession, the longest since World War II -- the reduction in jobs was still much smaller than expected.
Utah's jobless rate for May is expected to be up month-over-month but the number of initial claims for unemployment benefits last week was 2,400, which has come down by more than half from the first of the year, indicating job losses are flattening out.
"We're not going to turn this round on a dime," said Mark Knold, senior economist at the Utah Department of Workforce Services. "There's still more losses ahead, but not at the kind of volume we've seen the past three for four months."
The report on Friday by the Labor Department also adds to evidence that the recession is loosening its hold. It marked the fourth straight month that the pace of layoffs slowed nationally.
"This tide is turning," said Richard Yamarone, economist at Argus Research. "We expect this trend of slower job loss to continue throughout the year."
Still, the increase in the nation's unemployment rate from 8.9 percent in April underscores
If laid-off workers who have given up looking for new jobs or who have settled for part-time work are included, the unemployment rate would have been 16.4 percent in May, the highest on records dating to 1994.
Labor Secretary Hilda Solis called the rise in May's unemployment rate "unacceptable" and pledged to help bring it down by helping the unemployed get new skills or training.
President Barack Obama's stimulus package is expected to help bolster the economy. Vice President Joe Biden said he will join Obama on Monday in seeking to ramp up the pace this summer of the stimulus effort that Congress approved earlier this year.
Even with layoffs slowing, companies will be reluctant to hire until they feel certain that economic conditions are improving and that any recovery will last.
Since the recession began in December 2007, the economy has lost a net total of 6 million jobs.
As the recession bites into sales and profits, companies have turned to layoffs and other cost-cutting measures to survive the fallout. Those include holding down workers' hours and freezing or cutting pay. The average workweek in May fell to 33.1 hours, the lowest on records dating to 1964.
Stocks rallied on the better-than-expected number of payroll reductions, but then gave back most of the gains. The Dow Jones industrial average added slightly less than 13 points. Broader indexes were mixed.
Job losses -- while slower in May -- were still widespread. Construction companies cut 59,000 jobs, down from 108,000 in April. Factories cut 156,000, on top of 154,000 in the previous month. Retailers cut 17,500 positions, compared with 36,500, while financial activities cut 30,000, down from 45,000.
Education, health care, leisure and hospitality were among the industries adding jobs in May.
The Federal Reserve says unemployment will remain elevated into 2011 given the expectation of tepid recovery. Economists say the job market may not get back to normal -- meaning a 5 percent unemployment rate -- until 2013.
The Fed also said Friday that consumer borrowing in April dropped by $15.7 billion, the second largest decline ever in dollar terms following March's $16.6 billion, and more than double what economists had expected.
Still, evidence has been mounting that the recession is letting up, with fresh signs emerging earlier this week. The number of people continuing to draw unemployment benefits dipped for the first time in 20 weeks, and first-time claims also fell. Manufacturing's slide is slowing. Builders are boosting spending on construction projects and a barometer of home sales firmed.
