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Unemployment Rate Hits 8.1%

The nation's unemployment rate jumped to 8.1% in February from 7.6% in January, reaching its highest level since late 1983, as employers slashed 651,000 jobs amid a deep recession, the Labor Department reported. The net loss of 651,000 jobs in February followed even deeper payroll reductions than previously thought in the prior two months. According to the government's revised figures, the economy lost 681,000 jobs in December and another 655,000 in January. Since the recession began in December 2007, the economy has lost an astonishing 4.4 million jobs, more than half of which occurred in the past four months. The 8.1% rate of unemployment was the highest since an 8.3% rate in December 1983. The job cuts last month were widespread. Construction companies eliminated 104,000 jobs. Factories cut 168,000. Retailers slashed nearly 40,000. Professional and business services eliminated 180,000. Financial companies reduced payrolls by 44,000. Leisure and hospitality firms cut 33,000 positions. The government and the health care industry boosted employment in February.

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Date Last Updated: 03/11/2009