U.S. Unemployment Rate Jumps

(CBS/AP)  Employers worried about recession slashed 80,000 jobs in March, the most in five years and the third straight month of losses.

At the same time, the national unemployment rate rose from 4.8 percent to 5.1 percent, the clearest signal yet that the economy might already be contracting.

The new snapshot of the job market, released by the Labor Department Friday, underscored the damage that a trio of crises -in the housing, credit and financial sectors - has inflicted on companies, jobseekers and the economy as a whole.

The report follows Thursday's news that applications for jobless benefits totaled 378,000 last week. That was an increase of 22,000 from the previous week and was a far bigger jump than had been expected. The four-week average for new claims rose to 365,250.

The unemployment rate was the highest since September 2005, when significant job losses followed the devastating blows of Gulf Coast hurricanes.

Job losses were widespread in March. Construction, manufacturing, retailing, financial services and various business services all racked up losses. That overwhelmed gains elsewhere, including in education and health care, leisure and hospitality as well as in government.

The new employment figures were much weaker than economists were expecting. They were anticipating a drop of 50,000 payroll jobs and the unemployment rate to rise to 5 percent.

The 5.1 percent rate is relatively modest by historical standards, but was nonetheless the highest in more 2½ years.

Job cuts in both January and February turned out to be even deeper. Employers got rid of 76,000 in each month. The elimination of 80,000 jobs in March was the most since March 2003, when the labor market was still struggling to recover from the 2001 recession.

The economy is suffering the effects of a housing collapse, a credit crunch and a financial system in turmoil. That's causing people and businesses to hunker down, crimping spending, capital investment and hiring. Those things in turn further weaken the economy in what has become a vicious cycle.

For the first time, Federal Reserve Chairman Ben Bernanke acknowledged Wednesday that the country could be heading toward a recession, saying federal policymakers are "fighting against the wind" in combating it. Many other economists and the public believe the recession already has arrived.

Economists define a recession as two consecutive quarters of negative growth.

Bernanke wouldn't tip his hand about the Fed's next move. However, many economists believe the central bank will lower interest rates again when they meet later this month.

The Fed has taken a number of extraordinary actions recently - slashing interest rates, providing financial backing to JP Morgan's takeover of troubled Bear Stearns and opening an emergency lending program for big investment houses. All the actions are ultimately aimed at limiting damage to the national economy.

With a public on edge, Congress, the White House and presidential contenders are scrambling to come up with their own relief plans even as they engage in a political blame game.

[mlk2008]

In the first stimulus package was left out the additional federal unemployment assistance. At that time I expressed, that the refusal in adding this provision to the package was in part because it would expose the real unemployment rate. For example, I am unemployed, permanently looking for job, and there is no record of that, therefore I am not counted. The unemployment rate disclosed then and the current one is lower than the real one. At the same time this scenario favors employers, which are hiring people under draconian conditions, mostly don%u2019t offering permanent position, mostly contract or Temporary positions through agencies which the conditions are insulting. I have not refused any job offering, but in this long period I have been witnessed the transition of these conditions as the time goes by. At the same time the salary offered are ignoring the inflation rate in 2007 disclosed by the Federal Reserve of 7.5% plus the addition of almost 4% more in 2008, so far. The attention that most of the Media has paid to this issue has not been deep enough to denounce this, which is far more needed than the miserable check to receive in the coming weeks. I am paying mortgage, we do not have medical insurance, we are over fifty years old and I am the only source of income in my family. Today the conditions are desperate. I hope, and this is a big HOPE, that this time something is done, and for God%u2019s sake fast, including creating jobs. Thanks,

[bgwinnett]

liberalme

Looking at the Dollar and Oil prices, definitely.

[liberalme]

Perhaps with the help of the US, the Neo-cons thought that they would destroy themselves this time.

Posted by bgwinnett at 12:25 PM : Apr 05, 2008

Kinda backfiring huh?

[bgwinnett]

liberalme

Perhaps with the help of the US, the Neo-cons thought that they would destroy themselves this time.

[timdgrim]

Who''d Dana Perino B*** to get her job.
It wasn''t Clinton!

[liberalme]

Perhaps to turn the Shiites and Sunnis in the Middle East against each other, like divide and rule.
Posted by bgwinnett at 12:14 PM : Apr 05, 2008

They''ve been fighting since the beginning of time--we aren''t going to change anything--they''re just in our way to get the oil and pipeline!

[bgwinnett]

All this to win what?

Posted by liberalme at 12:07 PM : Apr 05, 2008

Perhaps to turn the Shiites and Sunnis in the Middle East against each other, like divide and rule.

[liberalme]

Bush Years 2001-2006, 7932
(These statistics are published by Congressional Research Service, and they may be confirmed by anyone at: http://www.fas.org/sgp/crs/ natsec/RL32492.pdf u can also see a breakdown by race and gender for all of you Feeling Guilty, left wing, moonbat liberals

Posted by airmanc5

Yep and with Bush, you forgot to add--

over 655000 Civilian Iraquis dead and only 1-2% of those death were by terrorists.
Oh I almost forgot--over 2 million displaced Iraquis too.

All this to win what?

[rudy654-2009]

How interesting that the so-called "conservatives" are trying to demonize the 80,000 newly unemployed.

[rudy654-2009]

Posted by donbl1 at 11:54 AM

Cite your statistics.