Everett, Wash.
Published: Saturday, October 4, 2008

760,000 jobs lost this year

The Labor Department's report on Friday shows the nation's jobless rate at 6.1 percent, with the total number of unemployed at 9.5 million.

Associated Press

 WASHINGTON -- Jobs are vanishing at the fastest pace in more than five years with pink slips likely to keep stacking higher in the months ahead, an urgent signal the country may be careering toward a deep and painful recession just as Americans prepare to elect a new president.

Whether that's Democrat Barack Obama or Republican John McCain, one of them will have to deal with the weakest employment climate in years.

Increasingly skittish employers dropped the ax even harder in September, chopping payrolls by 159,000 -- more than double the cuts made just one month before. It was the ninth straight month of job losses. So far this year, 760,000 jobs have disappeared.

The Labor Department's report, released Friday, also showed that the nation's unemployment rate was 6.1 percent, up sharply from 4.7 percent a year ago. Over the last year, the number of unemployed people has risen by 2.2 million to 9.5 million.

"Washington, the labor market has a problem," said Joel Naroff, president of Naroff Economic Advisors. "Firms are hunkering down and running as lean as possible. We are likely to see more months of job losses before conditions turn around."

The unemployment rate for blacks shot up to 11.4 percent, the highest since late 2003.

Even with Congress' unprecedented $700 billion financial bailout, the faltering economy and the jobs markets probably will get worse. Many believe the economy will jolt into reverse later this year -- if it hasn't already -- and will stay sickly well into next year.

The unemployment rate could hit 7 percent or 7.5 percent by late 2009. If that happens, it would mark the highest since after the 1990-91 recession. Some economists say the jobless rate could rise even more before the situation starts to get better.

Pressure is growing on Federal Reserve Chairman Ben Bernanke to do an about-face and lower a key interest rate in a bid to revive the economy. Many now think that will happen at the Fed's next meeting on Oct. 28-29 or even earlier.

The hope riding on such a move would be to spur nervous consumers and businesses to spend more freely again. They've clamped down as housing, credit and financial problems intensified last month, throwing Wall Street into chaos.

Friday's employment snapshot is the last before America goes to the polls in November.

Mounting job losses, shrinking paychecks, shriveling nest eggs and rising foreclosures all have weighed heavily on American voters.
© 2009The Daily Herald Co., Everett, WA