US Inc slashes over two lakh jobs in October
It is a stark proof that the world's largest economy is almost certainly in a recession. Stocks 52 Week: High, Low | BSE Losers: A, B | NSE Losers | Only: Buyers, Sellers
By Agencies |
WASHINGTON: The government says the nation's unemployment rate bolted to a 14-year high of 6.5 percent in October as employers slashed 240,000 jobs. It was stark proof the economy is almost certainly in a recession.
The new snapshot, released by the Labor Department, shows the crucial jobs market deteriorating at an alarmingly rapid pace.
The jobless rate zoomed to 6.5 percent in October from 6.1 percent in September, matching the unemployment rate in March 1994. Employers have cut jobs each month this year.
The struggling US economy had lost 159,000 jobs in September as the credit crunch hit a broad swath of industries.
When people lose their jobs, they tend to pare back family budgets and fall behind on their debt - not a good prospect for an economy suffering a simultaneous credit crisis and spending slowdown.
Traders were meanwhile betting on further interest rate cuts by central banks around the world. On Thursday the European Central Bank reduced eurozone borrowing costs by a half percentage point to 3.25 percent.
The new snapshot, released by the Labor Department, shows the crucial jobs market deteriorating at an alarmingly rapid pace.
The jobless rate zoomed to 6.5 percent in October from 6.1 percent in September, matching the unemployment rate in March 1994. Employers have cut jobs each month this year.
The struggling US economy had lost 159,000 jobs in September as the credit crunch hit a broad swath of industries.
When people lose their jobs, they tend to pare back family budgets and fall behind on their debt - not a good prospect for an economy suffering a simultaneous credit crisis and spending slowdown.
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Traders were meanwhile betting on further interest rate cuts by central banks around the world. On Thursday the European Central Bank reduced eurozone borrowing costs by a half percentage point to 3.25 percent.
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