European central bank urges cautions as unemployment worsens

us employers cut more jobs than expected in june pushing jobless rate to a 26 year peak and unemployement in Europe hit a 10year high, dampening hopes of a quick recovery from recession. Ecb chief warned that although the downturn had eased, weak economic activity would hamper growth for the rest of the year and only a gradual recovery would emerge by mid 2010.

Data showed that US lost 467,000 jobs in june, more than 100,000 greater than expected by economist breaking a four trend of moderation in job losses.The unemployment rate rose to 9.5% the highest since a matching jobless rate in Aug-1983

"It looks like the economy was still losing substantial momento as the secondquarter came to a close. This report is weak across the board." Said william sullivan , chief economist at JVB financial group in Florida.

unemlopyment is emerging as the biggest challenge to recovery which govts. around the world are trying to stroke with record low interest rates and by pumping trillion of dollars into their economies.

In Europe Central bank president Claude cautioned about economic growth after the ECB left rates at 1% record low. Economic activity over the remainder of this year is expected to remain weak but should decline less strongly than was the case in the first quarter in 2009. He said " The jobless rate in the 16 nation euro-zone area rose to 9.5%, the highest since 1999 data showed.