US unemployment rate reaches 7.6%
US unemployment is rising further
The US unemployment rate rose to 7.6% in January, up from 7.2% in December, according to official figures.
The rise puts the unemployment rate at the highest level since 1992.
According to the US Labor Department, the economy lost 598,000 non-farm jobs for the month, and it also revised upwards the job losses for December.
The rise in unemployment is a sign that the recession in the world＇s largest economy is deepening as companies are increasingly reluctant to hire.
Carmaking cutbacks
The monthly report on non-farm payrolls is seen to give one of the best ideas of how the economy is faring and comes amid growing fears that the global contraction will continue for some time.
The Labor Department revised upwards its estimate of job losses for December to 577,000 from 524,000.
In total, the US economy has lost 3.6 million jobs since the recession began in December 2007, with more than half of those jobs shed coming in the past four months.
During January manufacturing cut back 207,000 jobs, making it the largest one-month fall since October 1982. The cutback in the auto sector was largely responsible for the reduction in factory jobs.
Construction firms cut 111,000 jobs, professional and business services got rid of 121,000 posts, retailers axed 45,000 jobs, and 28,000 posts went in the leisure and hospitality sector.
The latest figures were significantly worse than economists had expected.
＇Awful report＇
"The report is awful. It＇s even worse than it looks because retailers did not hire workers prior to Christmas, but they still did enormous layoffs after Christmas," said Cary Leahey, an economist at Decision Economics in New York.
"Firms are now suffering under the burden of excess inventories and everywhere you look in the report you see declines in almost every industry."
Meanwhile, in Canada, unemployment reached 7.2%, after a worse-than-expected 129,000 jobs were shed in January.
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