The U.S. economy shed 598,000 jobs in January, the third month in a row that job losses have been more than half-a-million. The unemployment rate rose four-tenths to 7.6%, the highest rate since January 1993.
The consensus forecast was expecting 540,000 job losses, while the previous month was revised to 577,000 jobs lost, from an initially-reported 524k.
The unemployment rate soared up four-tenths to 7.6% (7.557%), a 15-year high. Economists were anticipating a 7.5% rate.
The loss in total private jobs was a whopping 604k. The goods-producing sector lost 319k and the service sector slashed 279k jobs. Construction fell by 111k, and manufacturing lost 207k jobs. The business services sector lost 121k jobs while the financial sector fell by 42k jobs.
The only gains seen in December were in areas outside the business cycle. Government jobs increased by 6k and education & health care advanced by 54k.
Average hourly earnings rose 0.3% from December. Average weekly earnings grew by 0.3% as on the month as well and rose 2.7% annually.
The labour force participation rate moved down two-tenths to 65.5%.
By Megan Ainscow and edited by Stephen Huebl
©CEP News Ltd. 2009