The June employment report turned out to be a major disappointment for market participants looking for continued, straight-line improvement in the labor market. After seeing steady improvement in the labor market since early 2009, markets had come to expect that the steady improvement would continue until the economy was adding jobs by the end of 2009. The June jobs report called into question that "steady progress", as the economy shed more jobs in June (-467,000) than it did in May (-322,000), and shed more jobs than the market expected – the market was looking for a 367,000 drop in payrolls in June. The only "bright spot" in the June labor market report was the unemployment rate in June versus May was the smallest month over month rise since the unemployment rate held steady between August and September 2008. Between October 2008 and May 2009, the unemployment rate moved by an average of 0.4% per month.

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