U.S. employers cut 539,000 jobs last month, the fewest since October, according to government data today that signaled the economy's steep decline might be easing and gave the stock market a boost, Reuters reported. The unemployment rate, however, soared to 8.9 percent, the highest since September 1983, from 8.5 percent in March and job losses in March and February were a combined 66,000 steeper than previously estimated, the Labor Department said. A 72,000 jump in government payrolls tempered the overall job-loss figure. Government employment was bolstered by the hiring of about 60,000 temporary workers in preparation for the 2010 Census and U.S. Labor Secretary Hilda Solis said this figure would fluctuate in the months ahead. Private sector employment fell by 611,000 in April after a 693,000 decline in March, the department said, which curbed some of the optimism over the report. Still, the data was not as bleak as financial markets had expected and offered the freshest sign that the intensity of the recession, now in its 17th month, was starting to fade. "The labor report added to the growing list of data points that imply that the steepest part of the economic contraction is now past," said Brian Fabbri, chief North America economist at BNP Paribas in New York. The payrolls reading, which beat market expectations for a 590,000 drop, and results of the government's tests on the health of the 19 biggest domestic banks lifted U.S. stocks. The blue chip Dow Jones industrial average was up 1.7 percent in afternoon trade. Government bond prices rose as investors focused on the fact that unemployment would continue to rise well into 2010. President Barack Obama, whose government has rolled out a record $787 billion rescue package of spending and tax cuts, said April's payrolls number was somewhat encouraging, but that the job losses were still a sobering toll. "It underscores the point we're still in the midst of a recession that was years in the making and that is going to be months or even years in the unmaking. We should expect further job losses in the months to come," Obama said.
