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| Version 3 | Version 4 |
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| US jobs data shows surprise fall | US jobs data shows surprise fall |
| (about 2 hours later) | |
| US employers have cut back on jobs for the first time in four years, Labor Department figures for August reveal. | US employers have cut back on jobs for the first time in four years, Labor Department figures for August reveal. |
| The Department of Labor said 4,000 jobs were cut in August, pushing the Dow Jones index down 214 points to 13,149 in Friday morning trading in New York. | |
| Market alarm spread because economists had anticipated data showing an increase of 110,000 jobs. | Market alarm spread because economists had anticipated data showing an increase of 110,000 jobs. |
| The statistics undermined those hopes and confirmed that recent turmoil in the financial markets is hitting jobs. | |
| Financial services firms are already laying off staff in the wake of the sub-prime mortgage debacle. | Financial services firms are already laying off staff in the wake of the sub-prime mortgage debacle. |
| Hirings falter | Hirings falter |
| The Department of Labor also cut its estimates for the number of new employees hired in June and July by a total of 81,000. | The Department of Labor also cut its estimates for the number of new employees hired in June and July by a total of 81,000. |
| It's dreadful...it seems to me almost inevitable we're heading for recession Analyst Michael Metz | It's dreadful...it seems to me almost inevitable we're heading for recession Analyst Michael Metz |
| The last time the US economy shed jobs was in August 2003 when the total number employed fell by 42,000. | The last time the US economy shed jobs was in August 2003 when the total number employed fell by 42,000. |
| The figures come in the wake of former Federal Reserve Bank boss Alan Greenspan comparing current market conditions to those preceding earlier crashes. | The figures come in the wake of former Federal Reserve Bank boss Alan Greenspan comparing current market conditions to those preceding earlier crashes. |
| Michael Metz, chief investment strategist at Oppenheimer & Co in New York, reacted to the latest employment figures with gloom. | Michael Metz, chief investment strategist at Oppenheimer & Co in New York, reacted to the latest employment figures with gloom. |
| "It's dreadful...it seems to me almost inevitable we're heading for recession", Mr Metz said. | "It's dreadful...it seems to me almost inevitable we're heading for recession", Mr Metz said. |
| The figures will add to pressure on the Federal Reserve to lower interest rates. | The figures will add to pressure on the Federal Reserve to lower interest rates. |
| Fed chairman Ben Bernanke has stated that he is prepared to act to prevent credit difficulties sparked by the sub-prime crisis from damaging the US economy. | Fed chairman Ben Bernanke has stated that he is prepared to act to prevent credit difficulties sparked by the sub-prime crisis from damaging the US economy. |
| Record mortgage defaults | |
| The US sub-prime mortgage sector concerns higher risk loans to people with poor credit histories or those on low incomes. | |
| Higher mortgage rates over the past year have meant record levels of defaults in the industry. | |
| The result has not only been significant financial difficulty for banks and investment firms heavily exposed to the sub-prime market, but also the recent stock market turmoil. | |
| This is because of fears that the crunch in the sub-prime sector will spread to the wider loans market as banks become far more cautious about whom they lend to. | |
| The situation has been exacerbated by the fact that sub-prime debt is often resold as part of a wider debt package, meaning that banks and investors are, as yet, unsure about how far the sub-prime downturn could spread. |