(PTI): New government data shows the unemployment rate climbed in 48 states and the District of Columbia, dashing hopes of an early recovery in the US economy.

According to a Labor Department report released on Friday, 17 US states and the District of Columbia recorded jobless rates in May which were above the national rate of 9.4 percent.

Michigan — home to giant automakers General Motors (GM) and Chrysler — reported the highest unemployment rate, 14.1 percent, followed by Oregon, which notched 12.4 percent, its greatest on record.

Both GM and Chrysler have filed for bankruptcy protection due to a sharp decline in sales.

The National Conference of State Legislatures called the data ‘disappointing’.

Michigan also had the largest monthly increase in its jobless rate. Oregon had the highest rate on a yearly basis, 6.7 percentage points.

The data showed that the number of jobs dropped in 39 states, but increased in 11 states and the District of Columbia.

California lost the most jobs, 68,900, of all the states in May, hitting its highest unemployment rate on record, 11.5 percent. Florida lost 61,000 jobs last month.

The US government has spent trillions of dollars to drive its economy out of the worst recession in years. However, the view that US will resume growth in the second half of the year has been challenged by many economists.

The US economy has lost over six million jobs since recession began 18 months ago and it is expected that the national jobless rate could hit 10 percent by the end of the year.