The latest gas pain: More job losses

An already weak labor market is likely to be further battered by high gas prices. Economists expect more layofffs in the next few months.

NEW YORK (CNNMoney.com) — The labor market was having enough trouble so far this year.

Now, fears about $4 gas and near-record oil prices are likely to throw more fuel on the unemployment fire.


On Friday, the Labor Department will release the May jobs report. Economists surveyed by Briefing.com forecast a net job loss of 60,000, the fifth straight month of job cuts. There have already been 260,000 job losses through the first fourt months of 2008.

The unemployment rate is expected to climb to 5.1% from 5% in April.

And the worst for the job market may not be over. Many economists say job losses could intensify during the rest of the year due to rising energy prices.

CNN