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Unemployment Rate Climbs to 7.6% in January

Employers drastically cut back in January as recession worries mounted, eliminating 598,000 jobs and pushing the unemployment rate up to 7.6%. The figures, reported by the Labor Department, were worse than what economists expected and underscore the toll the recession is having on companies and workers. The unemployment rate stands at its highest since September 1992. A staggering 3.6 million jobs have been lost since the recession began in December 2007. About half of this decline has occurred in the past three months. Factories slashed 207,000 jobs in January, construction companies eliminated 111,000 jobs, professional and business services cut 121,000 positions, retailers eliminated 45,000 jobs and leisure and hospitality axed 28,000 posts. Those reductions overwhelmed employment gains in education and health services, as well as in the government. The recession is not only hurting marginal companies. Major firms like Microsoft, Caterpillar, Pfizer, Macy's and Home Depot have announced job cuts.

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Date Last Updated: 02/17/2009