Unemployment Rate Reaches 7.6%

U.S. employers eliminated 598,000 jobs in January, the most since the end of 1974, sending the unemployment rate to 7.6%, the highest since September 1992. The Labor Department’s report, showed the terrible toll the drawn-out recession is having on workers and companies.

The latest net total of job losses was far worse than the 524,000 that economists expected. Job reductions in November and December also were deeper than previously reported. The increase in the jobless rate from 7.2% in December also was worse than the 7.5% rate economists expected.

So far the economy has lost 3.6 million jobs since the recession began in December 2007. About half of this decline occurred in the past three months. Factories slashed 207,000 jobs in January, the largest one-month drop since October 1982, partly reflecting heavy losses at plants making autos and related parts. Construction companies got rid of 111,000 jobs. Professional and business services chopped 121,000 positions. Retailers eliminated 45,000 jobs. Leisure and hospitality axed 28,000 slots.

The average work week in January stayed at 33.3 hours, matching the record low set in December. Average hourly earnings rose to $18.46 in January, up 0.3% from the previous month. Over the year, wages have risen 3.9%.