Unemployment in the US has topped 9% for the first time in more than 25 years as the financial crisis and recession push Americans out of work.

Analysts today said the jobless rate hit 9.2% last month - the highest since 1983 - after employers axed another 520,000 workers.

However, the number of people losing their jobs in May was the lowest for seven months, fuelling hopes that the US is beginning to recover from the downturn.

"The worst is over for the job market and for the economy," said John Silvia, chief economist at Wachovia.

Job losses peaked at 741,000 in January, the most since 1949.

The US, the world's biggest economy, has already lost 5.7 million jobs since the recession began in December 2007 - the most in any post-war slump.

Federal Reserve chairman Ben Bernanke this week warned of further "sizeable" job losses this year.

He said the economy will return to growth "later this year" but warned that unemployment will rise "into next year".

The bankruptcies of General Motors and Chrysler are likely to add to the jobless figures in coming months.

Rising unemployment has hit main street in the US.

"Fear drives conservatism in consumer spending, and the biggest fear now is about losing jobs," said Eric Wiseman, chief executive of VF Corp, the world's largest clothing maker.