Unemployment -- Monthly Rate Jump Highest Since Feb. 1986: The Bureau of Labor Statistics reported this morning that the nation's unemployment rate rose a half of a percent, from 5.0 in April to 5.5 percent in May, the fastest rise in 22 years, as 861,000 joined the ranks of the unemployed. Meanwhile, those with jobs have seen their real wages shrink this past year: hourly earnings have risen 3.5 percent, below the pace of inflation, which is running at about 4 percent. NY Times.

Translation -- Corrects for Hypocrisy, Hyperbole Washington, DC — Today, OMB Director Jim Nussle issued the following statement on Senate passage of the FY09 Budget Resolution: It is disappointing that Democrats in Congress are repeating last year's tax and spend game plan. The Democrat's budget resolution would result in the largest tax increase in our nation's history, adds $25 billion in new spending this year and $209 billion more over 5 years, while failing to address the looming entitlement crisis. Translation:

Budget -- Senate Adopts FY09 Resolution: In a near-party line vote, the Senate passed a $3.03 trillion budget blueprint yesterday, 48-45. The resolution moves over to the House, which is expected hold a vote on it today. The thorniest long-term fiscal policy questions (about the AMT, extending the Bush tax cuts, etc.) will probably be deferred to the next Congress and the new president, but the appropriations process will at least start by regular order, at least in the House. Statement of Senate Budget Committee chair Kent Conrad (D-ND).

By a 48-45 vote, the Senate approved a $3.03 trillion spending blueprint for FY 2009. The resolution's $1.013 trillion domestic spending level tops the president's request by some $24.5 billion. CQ ($- sorry): The conference agreement on the budget blueprint was adopted 48-45 on a largely party-line vote. To accommodate the absences of hospitalized Sens. Edward Kennedy, D- Mass., and Robert C. Byrd, D-W.Va., Republican Sens. John W. Warner of Virginia and Pete V. Domenici withheld their "no" votes, pairing with the ailing Democrats.