June Job Losses at 125,000, But Jobless Rate Falls to 9.5% Published: Friday, 2 Jul 2010 | 12:31 PM ET By: CNBC.com with Reuters The US economy lost 125,000 jobs in June, more than economists had forecast, as thousands of temporary census jobs ended and private hiring grew less than expected. And though the unemployment rate unexpectedly fell to 9.5% from 9.7%, the lowest in a year, it was largely due to more people dropping out of the labor force. The report was the latest sign that the economic recovery may be faltering. "Overall what this does is it reinforces the market's view that the U.S. recovery is losing steam,'' said Greg Salvaggio, vice president of trading at Tempus Consulting in Washington. Stocks tumbled in reaction to report, while Treasury debt prices slipped. Private hiring rose 83,000 after increasing only 33,000 the prior month, the Labor Department said. But nonfarm payrolls, dropped 125,000—the largest decline since October—as census jobs fell 225,000. Financial markets had expected employment to fall 110,000 last month, with the jobless rate edging up to 9.8 percent from 9.7 percent in May. The government revised data for April and May to show 25,000 more jobs created than earlier reported.