467K jobs cut in June; jobless rate at 9.5 percent

"WASHINGTON – Employers cut a larger-than-expected 467,000 jobs in June, driving the unemployment rate up to a 26-year high of 9.5 percent, suggesting that the economy's road to recovery will be bumpy.
The Labor Department report, released Thursday, showed that even as the recession flashes signs of easing, companies likely will want to keep a lid on costs and be wary of hiring until they feel certain the economy is on solid ground.
June's payroll reductions were deeper than the 363,000 that economists expected and average weekly earnings dropped to the lowest level in nearly a year.
However, the rise in the unemployment rate from 9.4 percent in May wasn't as sharp as the expected 9.6 percent. Still, many economists predict the jobless rate will hit 10 percent this year, and keep rising into next year, before falling back.
All told, 14.7 million people were unemployed in June.
If laid-off workers who have given up looking for new jobs or have settled for part-time work are included, the unemployment rate would have been 16.5 percent in June, the highest on records dating to 1994."

to read the full report, go to http://news.yahoo.com/s/ap/20090702/ap_on_bi_go_ec_fi/us_economy

Not to be a kill-joy to all the analysts who say that the economy is recovering and that the recession is all but over, but this news is not encouraging to me. I believe that there is still a long road to recovery. Not only have retirement funds completely diminished at an average of 40% losses, but the recent gains on Wall Street have done little to correct course and slow the losses. There is increasing evidence that the market is currently experiencing a bump before another decline. This is much like what was experienced at the beginning of the year, when the market surged to a gain of 20%, before a severe loss of 38%. We are still at this point, more than 25% below what market highs were just a year ago.

No matter what way you look at it, Optimist, Pessimist, or somewhere in the middle. There is no denying the damage that has been done to the economy and the long road to recovery. It is not too late to invest your product wisely. Even if you have lost a significant amount of your funds, we will make sure that retirement will be a reality and not just a pipe dream. Our clients have experienced complete security in their retirement funds during this difficult time in our economy.

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