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MarketWatch: December job toll: 524,000
More than half a million Americans lost their jobs last month, capping the worst year for US unemployment since the end of the Second World War.
The US Labour Department said today that 524,000 people were sacked in December, following 584,000 job losses in November. December's total took total US job losses for 2008 to 2.589 million - the worst unemployment number since 1945.
Investors sent the Dow Jones industrial average down 109.83 points to 8,632.63.
Nearly two million of last year's job losses occurred in the final four months of 2008 as employers including AT&T, Bank of America and Dow Chemical announced thousands of staff cuts.
At 7.2 per cent, the jobless rate in America is now at a 15-year high. The US had been prepared for the terrible figures following shocking unofficial unemployment numbers released on Wednesday.
President-elect Barack Obama yesterday acknowledged the huge economic problems facing America, warning of a "crisis unlike any we've seen in our lifetime". He urged Congress to quickly approve his $800 billion programme designed to stimulate the economy. December's figures included 21,400 job cuts in the auto and related industries, while manufacturing payrolls fell by 149,000.
The service industry, which includes shops and banks, lost 273,000 jobs.
The new year has not started cheerfully on the jobs front. Yesterday Walgreen, the drug store chain, announced 1,000 staff reductions.
Ian Shepherdson, chief US economist at High Frequency Economics, said, however, that the US may be nearing the worst in unemployment.
"Overall, a terrible report," he said of today's figures. "The only possible glimmer of light is that the maximum rate of fall of payrolls is hopefully not far off."
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The labor force is 50% bigger than in 1946, so comparing absolute numbers is deliberately misleading.
Mac, Washington, USA
The USA cannot be world bully and immune from its ills for ever!!
Lets see if Obama can do better than Brown / Darling?
He cannot possibly do worse!
michael durham, London , England
MNoreover 'job losses' (events, people going from employed to unemployed) ) clearly isnt the same as 'jobless' (number, or %, jobless at any one time - but % of what ?those seeking work, all adults...)
Statistically not so much a minefield as a swamp
ellen, newcastle, uk
This is not true at all the unemplyment rate in the USA ranged rom 8.6% to 10.8 percent in 1982.
source link : http://research.stlouisfed.org/fred2/data/UNRATE.txt
data Source:U.S. Department of Labor: Bureau of Labor Statistics
joseph, canterbury, kent
"The suggestion that 2.5m unemployed in the US now is the same as 2.5m unemployed in 1945 (when the country's population was approximately half of what it is today) is frankly insulting.
Philip Sharman, Kettering, England"
2.5 m is the number of people who lost a job, not the total out of work
paulcooke, Gloucester,
Um, over half a million people lost their jobs. Those of you saying that relative to the population in 1945 and now are missing the point. Over half a million people have lost their jobs. 2 million in the last 4 months. It won't take long for this to be WORSE than 1945.
Alex B, Chicago, USA
Not wishing to suggest that the situation is not very bad, I believe the headline is slightly misleading because the population of the US was much lower in 1945, and the actual rate of unemployment has more recently been a lot higher than it is now.
Lee, Columbus, OH, USA
So what is it - worst year since 1945 or 1993?
I know which of the two makes the most striking headline.
The suggestion that 2.5m unemployed in the US now is the same as 2.5m unemployed in 1945 (when the country's population was approximately half of what it is today) is frankly insulting.
Philip Sharman, Kettering, England
I agree - it becomes a self fulfilling prophecy.
Heaven forbid teh US might lead the global economic recovery!!
paul, Glasgow, UK
What is misleading about official unemployment numbers? The numbers should in fact be higher if you take into consideration discouraged workers.
Adrian, London, UK
It's headlines like this that mislead the public.
Michelle, Phoenix, USA