At 7.6%, US unemployment rate highest since 1992

American firms shed nearly six lakhs jobs last month as the unemployment rate in US surged an all time high in 16 years at 7.6 per cent, taking the figure to a staggering 36 lakh after the global meltdown struck in late 2007, said the government.

As many as 598,000 people lost their jobs in January and the unemployment rate in US too rose from 7.2 to 7.6 per cent which is an all time high in 16 years, Department of Labour said in its report. The report puts tremendous pressure on President Barack Obama to revive the economy.

About one-third of the total job loss of 3.6 million since December 2007 has been in the last three months. “In January, job losses were large and widespread across nearly all major industry sectors,” Keith Hall, Commissioner of Bureau of Labor Statistics, said in a statement.

The report said that both the number of unemployed persons at 11.6 million and the unemployment rate at 7.6 per cent rose in January.

Over the past 12 months, the number of unemployed persons has increased by 4.1 million and the unemployment rate has risen by 2.7 percentage points, it said. However, the report said, the government added 6,000 jobs.

Factories slashed 207,000 jobs in January this year, the largest one-month drop since October 1982, reflecting heavy losses at plants making autos and related parts.

Construction companies too shed 111,000 jobs. Professional and business services axed 121,000 positions. Retailers also eliminated 45,000 jobs. Leisure and hospitality sector too removed 28,000 slots.

Those job cuts overshadowed employment gains in education and health services, as well as in the government.

The layoffs and salary cut plagued wide swath of employers which included retailers and business service sector.

Caterpillar Inc, Pfizer Inc, Microsoft Corp, Estee Lauder Cos, Time Warner Cable Inc, and Sprint Nextel Corp are among the companies that sliced payrolls, according to AP.

Manufacturers especially car makers construction companies and retailers have been particularly hard hit by the recession.

Americans cut back sharply on spending at the end of last year, thrusting the economy into its worst backslide in a quarter-century.

Companies are slashing payrolls and are harping on cost cutting measures, including trimming workers’ hours and freezing wages. They are cutting pay to cope with shrinking appetites from customers in the US and overseas, who are struggling with their own economic troubles.

The average work week in January was at 33.3 hours, matching the record low set in December. With no place to go, the number of unemployed workers climbed to 11.6 million.