Investors have been waiting anxiously for the Jobless report to determine the course of the U.S economy and the road it’s following to reach recovery, whereas that goal has been sit slightly far as indicated by the Labor Department after releasing the Nonfarm payrolls report which came in worse than expected.

The U.S economy shed a total of 467 thousand jobs throughout the month of June coming in deeper than the previous revised 322 thousand job loss, and inversely with markets expectations of 365 thousand, Indicating that the road to recovery is still bumpy and out of reach.

Unemployment rate throughout the U.S peaked again at a 26 year high reaching 9.5% from the previous 9.4%, but investors might feel slightly relieved that it didn’t meet markets expectations of 9.6%.

Never the less unemployment rate will continue to incline throughout this year, as the median estimate of analyst’s indicate that unemployment rate will reach 10% by the end of this year, where some other feel that it could reach higher and continue to hammer economical activities throughout this year and next year.

The Labor sector continue to suffer the worst from the global turmoil as it was struck deeply with no chance of recovering any time near, as Obama’s economical team expect that Unemployment rate will bounce back near 7% by the end of Barack Obama’s first term, as they inherited the worst financial crisis in decades and two exhausting and costly wars.

The Jobless report showed that the total private sector shed 415 thousand jobs from the previous 312 thousand reported in May, whereas the Goods-producing layed off 223 thousand jobs from the previous 215 thousand, and Construction companies reduced its workforce by 79 thousand compared with the previous 48 thousand reported in May.

The Manufacturing sector; which has shown signs of improvement throughout the past few months, reported job losses of 136 thousand in June from May’s 156 thousand figure, in addition Retail Trade lost 21 thousand jobs from the previous 18 thousand.

As for the financial sector the report showed a total job loss of 27 thousand only compared with the previous 30 thousand job loss reported in May, while the Business Services terminated 118 thousand jobs compared with the previous 48 thousand in May.

The U.S economy suffers from the deep recession, whereas some investors and analysts believe that the worst of the recession is over, the government should start caring by high unemployment rates now that will be accompanied soon by high inflationary levels, thus threatening the economy of risk of Stagflation and thus delaying recovery for the world’ biggest economy which accounts for 30% of the world’s GDP.

Sub indices in the Report showed that the Average hourly earnings declined in the month of June to 0.0% compared with the previous incline of 0.1%, and on the yearly scale it declined to 2.7% from the previous 3.1 percent reported in May. In addition the Average weekly hours declined to 33.0% from the previous 33.1%.

With lower weekly hours and lower salaries, consumers will slash down their spending and focusing on buying basic need, and that is the major reason for the economic weakness in the U.S as consumer spending accounts for 2/3 of the national GDP.

The U.S government have been trying its best to create more jobs, and provide tax repays for first time house buyers along with looking over inflation levels to stimulate the economy once again, but with the continues job shed and lower earnings that could be a hard formula to solve.

As for the other news that surfaced today, the Labor department released also the jobless claims for the week ending in June 27 whereas it improved to 614 thousand from the previous revised estimate of 630 thousand and slightly better than the expected 614 thousand, in addition Continuing claims for the week ending June 20 declined to 6.702 million from the previous revised 6.755 million and better than the expected 6.740 million.

The U.S economy will celebrate Independence Day in the midst of the global recession with one thing on their minds, high unemployment that keeps hammering down economic activities in the United States.