FACTBOX: candidates reaction to high jobless rates

(Reuters) - The U.S. unemployment rate jumped sharply in May to its highest level in 3 1/2 years, underscoring the recessionary risk the economy still faces. Here are reactions from the two main presidential candidates.

REPUBLICAN JOHN MCCAIN

"Today's news about unemployment is a stark reminder of the economic challenges facing American families. As the worst single monthly increase in the unemployment rate in two decades clearly shows, Americans across this country are hurting and we must act now to support workers, families and employers alike.

"This means getting our economy back on track by providing immediate tax relief, enacting a HOME plan to help those facing foreclosure, lowering health care costs, investing in innovation, moving toward energy independence and opening foreign markets to our goods.

"The American people cannot afford more inaction from Washington. The wrong change for our country would be an economic agenda based upon the policies of the past that advocate higher taxes, bigger government, government-run health care and greater isolationism.

"To help families at this critical time, we cannot afford to go backward as Senator Obama advocates."

DEMOCRAT BARACK OBAMA

"Today's jobs report is deeply troubling ... This is a reminder that working families continue to bear the brunt of the failed Bush economic policies that John McCain wants to continue for another four years.

"In the first five months of 2008, our economy has lost 324,000 jobs, and workers' wages once again failed to keep pace with the skyrocketing cost of health care and college tuition and gas.

"That's why we can't afford John McCain's plan to spend billions of dollars on tax breaks for big corporations and wealthy CEOs and that's why I'm offering change that will provide working families with a middle-class tax cut, affordable health care and college and an energy plan that will create up to 5 million good-paying jobs that can't be outsourced.

"That's the change the American people are looking for and that's how we'll build an economy of shared prosperity once more."

(Reporting by Deborah Charles; Editing by Bill Trott)