The nation's employers trimmed 467,000 jobs last month as the unemployment rate jumped to 9.5 percent - up from 9.4 percent in May - a 26-year high, according to U.S. Department of Labor.

"This recession is very deep," said Barry Bluestone, an economist at Northeastern University.

While the unemployment rate was flat in June, 358,000 people left the labor force, he said. "Most of them left because they were discouraged and no longer searched for work and don't show up in the unemployment data."

Economists expect the unemployment rate will keep rising this year and possibly reach 10 percent by year's end. The U.S. economy has lost 6.5 million jobs since the recession began in late 2007 - the biggest drop in any post-World War II economic slump.

More layoffs are expected in the wake of the bankruptcies of General Motors and Chrysler. 3M Co., the maker of Post-it Notes and Scotch Tape, recently reduced positions while Dow Chemical Co., the largest U.S. chemical maker, is cutting jobs.

Jobless claims for the week ending June 27 were 614,000, a decrease of 16,000 from the previous week's figure of 630,000. The monthly average was 615,250, a decrease of 2,750 from the previous week's revised average of 618,000.

In May, the Bay State unemployment rate reached 8.2 percent, up from 7.4 percent in January.

While the unemployment rate has risen steadily this year, Massachusetts added 4,900 new jobs in May, the first net gain in a year in Massachusetts.

Still, the state has shed 111,000 jobs overall in the past year.

Originally published by By THOMAS GRILLO.

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