According to BLS and WSJ: The U.S. unemployment rate posted its sharpest one-month increase in 22 years last month, suggesting U.S. consumers already facing a housing slump and soaring gasoline prices now confront growing pressure from a weakening jobs market.
The data, which included a fifth-straight drop in nonfarm employment, should take financial-market expectations of Federal Reserve rate increases as soon as this fall off the table.
The below graph shows the unemployment rate and the year-over-year change in employment vs. recessions.
(click to enlarge; coutesy of CR)
Note the current recession indicated on the graph is “probable”, and is not official.