Jump in unemployment

The U.S. unemployment rate soared to 5.5 percent last month, while the separate payroll survey showed a loss of 49,000 jobs. All told, it’s a pretty miserable report, although the 49,000 figure is a little lower than what had been expected. Up until now, employment levels have been falling, but not by the numbers typically associated with a recession. If a deteriorating job market is added to the mix of housing woes and skyrocketing gas prices, it's hard to see how the U.S. avoids a full-fledged downturn. Really. May's 5.5 percent unemployment rate, up a whopping 0.5 percent from the previous month, is at its highest level since October 2004. Keep in mind, though, that the government's jobless survey tends to be volatile between April and July because so many young people are entering the workforce. (WSJ, NYT)