U.S. jobless rate jumps to 7.6%; 598K jobs lost

Recession-battered employers eliminated 598,000 jobs in January, the most since the end of 1974, and catapulted the unemployment rate to 7.6%. The grim figures were further proof that the nation’s job climate is deteriorating at an alarming clip with no end in sight. The Labor Department’s report, released today, showed the terrible toll the drawn-out recession is having on workers and companies. It also puts even more pressure on Congress and President Barack Obama’s administration to revive the economy through a stimulus package and a revamped financial bailout plan, both of which are nearing completion. 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. With cost-cutting employers in no mood to hire, the unemployment rate bolted to 7.6% in January, the highest since September 1992. The increase in the jobless rate from 7.2% in December also was worse than the 7.5% rate economists expected. All told, the economy has lost a staggering 3.6 million jobs since the recession began in December 2007. About half of this decline occurred in the past three months.