The worse-than-expected figures illustrate steep redundancies across all major sectors of the US workforce.
US companies cut 598,000 jobs in January, bringing unemployment to its highest level in 34 years, a report out today has illustrated.
The figures, collated by the Labor Department, have confirmed the dire state of the US job market, with unemployment levels now sitting at a worse-than-expected 7.6%. This represents the highest rate of unemployment seen since September 1992.
Redundancies were made across the majority of sectors with manufacturing and construction hit particularly hard, these industries saw 207,000 and 111,000 cuts respectively. 121,000 jobs were lost across so called ‘professional’ and ‘business’ vocations, while retailers axed 45,000 positions and the leisure and tourism industry 28,000.
January’s job loss total signifies the largest number of jobs lost in any one month since December 1974 when 602,000 employees found themselves surplus to requirements. The 598,000 figure is also significantly higher than the 525,000 predicted and signifies a continuing deterioration in job prospects as the economic situation in the US worsens.
Incorporating today’s figures, it is believed that 3.6 million jobs have been cut since the onset of the downturn in December, 2007. More shocking still, estimates also suggest that almost half of these redundancies were made in the last three months alone.
Announced as the US senate debate President Obama’s $900,000 economic stimulus plan, these figures only reiterate the need for drastic action on the part of the government if the US economy is to be salvaged.
