The Sixth Straight Month of Job Losses

The Labor Department reported a net loss of 62,000 jobs in June. That matched the job loss figure for May, which was revised higher from 49,000.

The June number brought to 438,000 the number of jobs lost by the U.S. economy so far this year.

The unemployment rate stayed at 5.5%. Economists had forecast the rate would come in at 5.4% in the latest reading.

In a separate report, the department said initial claims for unemployment insurance rose 16,000 to 404,000 in the latest week. Economist Robert Brusca of FAO Economics said the reading over 400,000 is a "classic recession signal."

And the even more closely watched four-week moving average for initial claims neared that worrisome 400,000 benchmark, reaching 390,500 - the highest level since the four weeks after 2005's Hurricane Katrina. The four-week average hasn't been at or above the 400,000 mark since 2003.

Job losses:
Business and Professional Services – 51,000
Construction – 43,000
Manufacturing – 33,000
Retailers – 7,500

Job gains:
Government – 29,000
Education and Healthcare Services – 29,000
Leisure and Hospitality – 24,000

The seasonally adjusted average hourly wage edged up 6 cents to $18.01, which was in line with forecasts, while the average hourly work week stayed unchanged.

Wages are not keeping pace with inflation, as the average wage is now up 3.4% over the last 12 months, less than the 4.5% rise in prices over the 12 months ended in May as reported by the government.