Business Highlights

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Jobless rate hits 9.4 percent in May; layoffs slow

WASHINGTON (AP) — With companies in no mood to hire, the unemployment rate jumped to 9.4 percent in May, the highest in more than 25 years. But the pace of layoffs eased, with employers cutting 345,000 jobs, the fewest since September.

The much smaller-than-expected reduction in payroll jobs, reported by the Labor Department on Friday, adds to evidence that the recession is loosening its hold on the country.

It marked the fourth straight month that the pace of layoffs slowed.

Still, the increase in the nation's unemployment rate from 8.9 percent in April underscores the difficulties that America's 14.5 million unemployed are having in finding new jobs.

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GM to sell Saturn brand to Penske dealership chain

NEW YORK (AP) — General Motors Corp. has a tentative deal to sell its Saturn brand to auto racing magnate Roger Penske's dealership group, both companies said Friday.