Unemployment in Biggest Monthly Spike Since `86

Shrugging off the promised effects of the Bush Administration’s so-called “economic stimulus” program, the U.S. economy stumbled badly in May, with unemployment jumping from 5.0 to 5.5 percent - the biggest monthly rise in more than 20 years. Nervous employers, freshly squeezed by unprecedented energy costs and the deepening credit crisis, cut 50,000 jobs in May, bringing the total number of jobs lost in 2008 to 324,000.

Employers now have cut payrolls for five straight months in manufacturing, construction, retailing, professional and businesses services, leading many economists to conclude the economy is in recession.

The government said the number of unemployed grew by 861,000 in May - rising to 8.5 million. A year ago, the number stood at 6.9 million and the jobless rate was 4.5 percent.

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