Unemployment rises to 9.5% in U.S.

Bureau of Labor Statistics, in its monthly Employment Situation Summary, said, “Job losses were widespread across the major industry sectors, with large declines occurring in manufacturing, professional and business services and construction.”

Sectoral analysis
The job loss has been wide ranging. The manufacturing sector has been hit the worst, reducing payrolls by 136,000 jobs. The auto industry shed 26,500 positions.

The white collar jobs have also been adversely hit with the professional and business service sector losing 118,000 jobs, information reducing 21,000 and financial activities slashing 27,000 jobs. Even the federal government shed 49,000 jobs.

Education and healthcare sectors are the only ones that have witnessed growth and have created 34,000 positions.

"The picture that is emerging with increasing clarity is of an economy that has undergone a wrenching recession the last 18 months but is now gradually transitioning into recovery," said Bernard Baumohl of the Economic Outlook Group.

Economy on a slow path to recovery
Despite rising unemployment, positive signs have emerged from the auto industry that registered strong sales.

Even the real estate sector has marked recovery as prices have stopped falling in some markets.

The economists have felt the need for another dose of government spending to lift up the economy but the government has reiterated that there is enough recovery money in the pipeline.

“Not all the recovery money has been put to work yet,” said Labor Secretary Hilda Solis. “We're making progress.”

Explaining the reasons for rise in the unemployment rate, she said that money is moving slowly as acquiring government permits for construction purposes is time-consuming.

“Overall, it's been a challenge,” she said. “We still have a ways to go.”