Employers cut 467,000 jobs in June, far more than expected, while the unemployment rate rose to 9.5 percent, the government said on Thursday in a report that showed a labor market continuing to struggle with a deep recession.

The June job losses were more than 100,000 greater than the 363,000 consensus of Wall Street economists polled by Reuters and broke a four-month trend of moderation in job losses.

The Labor Department data showed that in April and May, 8,000 fewer jobs were lost than previously reported. The May job losses were revised downward to 322,000, while the April losses were revised upward to 519,000.

The jobless rate of 9.5 percent compares with 9.4 percent in May and was the highest since a matching unemployment rate in August 1983. Analysts had expected the rate to rise to 9.6 percent.

While job losses in June were spread across all sectors, the June figures showed the steepest declines in services, which fell 244,000 after a 107,000 drop in May.

Professional and business services fell 118,000, while government employment fell 52,000. Manufacturing was one of the few sectors to show a smaller drop in June, falling 136,000 after a 156,000 fall in May.

Weekly Jobless Claims Drop:

The number of workers filing new claims for jobless benefits actually fell by 16,000 last week, and the number staying on the rolls after collecting an initial week of aid also fell, the government said in a report on Thursday.

Initial claims for state unemployment insurance fell to 614,000 in the week ended June 27 from an upwardly revised 630,000 the prior week, the Labor Department said. Economists had expected claims to fall to 615,000 from an initially reported 627,000. Claims had risen in the prior two weeks.

Continuing claims for the week ended June 20 fell for only the third week this year, to 6.702 million from an upwardly revised 6.755 million the prior week. Analysts had expected continuing claims at 6.74 million.

The four-week moving average of weekly claims, considered an important gauge of labor market health because it irons out weekly volatility, fell 2,750 to 615,250, the lowest level since the week ended Feb. 7.

(Source: CNBC)