U.S. staffing firm shares fall on weak jobs report

* Sector down 3 pct, slightly deeper slide than S&P 500

* Execs see no quick turnaround for U.S. recession

By Scott Malone

BOSTON, July 2 (Reuters) - Shares of staffing companies fell on Thursday after a government report showed U.S. employers cut more jobs than expected last month and the unemployment rate rose to 9.5 percent.

Staffing executives said the sharper-than-expected drop suggested there will be no quick end to the current recession

-- the worst the United States has seen since the early 1980s. -- the worst the United States has seen since the early 1980s. Job cutting will likely continue through 2009, likely pushing unemployment above 10 percent, they said.

"It's going to take till the end of the year at best before we stop losing jobs," said Tig Gilliam, North American chief executive for Adecco SA (ADEN.VX), the world's largest staffing company. "The unemployment rate is going to rise; north of 10 percent is likely. It's just not going to turn around on a dime."

The Standard & Poor's commercial and professional services index .15GSPCS was down 2.7 percent in midday trading, a somewhat steeper slide than the 2.3 percent of the broad Standard & Poor's 500 index .SPX.