The U.S. economy shed 651,000 jobs in February, the fourth month in a row that job losses have been more than half-a-million. The unemployment rate rose five-tenths to 8.1%, the highest rate since December 1983.
Economists had forecast a loss of 650k jobs in February, while the previous month was revised up to 655k jobs lost, from an initially-reported 598k.
The unemployment rate soared up five-tenths to 8.1% (8.084%), a 25-year high. Economists were anticipating a 7.9% rate.
The loss in total private jobs was a whopping 660k. The goods-producing sector lost 276k and the service sector slashed 375k jobs. Construction fell by 104k, and manufacturing lost 168k jobs. The business services sector lost 180k jobs while the financial sector shed 44k jobs.
The only gains seen in January were in areas outside the private sector. Government jobs increased by 9k and education & health care advanced by 26k.
Average hourly earnings rose 0.2% from January, while average weekly earnings grew by 0.2% on the month and 2.1% annually.
The labour force participation rate moved down one-tenth to 65.6%.
By Megan Ainscow and edited by Stephen Huebl
©CEP News Ltd. 2009