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US job losses reach 35-year high | US job losses reach 35-year high |
(10 minutes later) | |
US employers axed 533,000 jobs in November, the biggest monthly cut in 35 years, the US Labor Department said. | US employers axed 533,000 jobs in November, the biggest monthly cut in 35 years, the US Labor Department said. |
In a dramatic indication of the worsening situation in the economy, the US jobless rate rose to a 15-year high of 6.7% from 6.5% in October. | In a dramatic indication of the worsening situation in the economy, the US jobless rate rose to a 15-year high of 6.7% from 6.5% in October. |
Since these latest figures were compiled, further jobs losses have been announced, including big cuts at AT&T. | Since these latest figures were compiled, further jobs losses have been announced, including big cuts at AT&T. |
Recent weak economic data has fuelled fears that the world's biggest economy is set for a deep, long downturn. | Recent weak economic data has fuelled fears that the world's biggest economy is set for a deep, long downturn. |
"This was much worse than was expected and represents wholesale capitulation. The threat of a widespread depression is now real and present," said Peter Morici, a professor at the University of Maryland School of Business. | |
The dollar fell against major currencies, and US light crude dived $1.31 to $42.31 a barrel after the November jobless figures were unveiled. | The dollar fell against major currencies, and US light crude dived $1.31 to $42.31 a barrel after the November jobless figures were unveiled. |
Recession year | Recession year |
The National Bureau of Economic Research said this week that the US entered a recession in December 2007. | The National Bureau of Economic Research said this week that the US entered a recession in December 2007. |
The economy has just collapsed, and has gone into a free fall Richard Yamarone, Argus Research Oil prices fall after jobs data | |
Separately, a measure of US service sector activity, the Institute for Supply Management's index, dropped to a record low in November. | Separately, a measure of US service sector activity, the Institute for Supply Management's index, dropped to a record low in November. |
The US service sector makes up about 80% of US economic activity. | The US service sector makes up about 80% of US economic activity. |
November was the 11th month in a row that the economy lost jobs. | November was the 11th month in a row that the economy lost jobs. |
"In the past six months the US has lost 1.55 million jobs, almost as many as were lost in the whole 2001 recession," said Ian Shepherdson at High Frequency Economics. | |
"You can't get much uglier than this. The economy has just collapsed, and has gone into a free fall," said Richard Yamarone at Argus Research in New York. | "You can't get much uglier than this. The economy has just collapsed, and has gone into a free fall," said Richard Yamarone at Argus Research in New York. |
But some analysts say November job losses were expected to be very high. | But some analysts say November job losses were expected to be very high. |
"Markets have priced in the high job losses and unemployment rate in November," said Arpitha Bykere at RGE Monitor. | "Markets have priced in the high job losses and unemployment rate in November," said Arpitha Bykere at RGE Monitor. |
Bleak outlook | Bleak outlook |
The economy contracted at an annual rate of 0.5% from July to September due to the biggest fall in US consumer spending in 28 years. | The economy contracted at an annual rate of 0.5% from July to September due to the biggest fall in US consumer spending in 28 years. |
Many economists believe the gross domestic product will fall even more sharply in the current quarter. | |
On Wednesday, the Federal Reserve Board painted a bleak picture of the US economy in its influential Beige Book, a report used to help determine US interest rates. | On Wednesday, the Federal Reserve Board painted a bleak picture of the US economy in its influential Beige Book, a report used to help determine US interest rates. |
It said economic activity has weakened across the US in the past two months, with retail sales, and vehicle sales in particular, "down significantly". | It said economic activity has weakened across the US in the past two months, with retail sales, and vehicle sales in particular, "down significantly". |
Are you worried about losing your job? Have you recently been made redundant? Are you an employer? Send us your comments using the form below: | Are you worried about losing your job? Have you recently been made redundant? Are you an employer? Send us your comments using the form below: |
In most cases a selection of your comments will be published, displaying your name and location unless you state otherwise in the box below. | In most cases a selection of your comments will be published, displaying your name and location unless you state otherwise in the box below. |