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Surge in May Jobless Rate Underscores Weak Economy.

Byline: Jerome Idaszak

A big jump in the jobless rate in May to 5.5% confirms a weak economy. The rate is the highest since October 2004, leaping from 5% the previous month and suggests sluggish economic growth -- at best -- the next several months.

The economy also continues to shed jobs at a steady clip. The Labor Department today reported that payrolls shrank in May by a net 49,000 jobs, the fifth straight month of declines. So far this year, net job losses total 324,000.

Most economists were caught off guard. They were expecting a loss of about 60,000 jobs and for the unemployment rate to creep up to 5.1%. One factor boosting the jobless rate was a surge of ...

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