The unemployment rate in the United States has reached a 26-year high of 10.2 per cent in October and employers cut more jobs than forecast.
Payrolls fell by 190,000 workers last month, compared with a 175,000 drop anticipated by economists surveyed by Bloomberg, figures from the Labor Department showed today in Washington.
The jobless rate gained from 9.8 per cent in September and exceeded 10 per cent for the first time since 1983.
Revisions added 91,000 from payroll figures previously reported for September and August. The jobless rate was projected to rise to 9.9 per cent by a survey of economists.
Payrolls at builders declined 62,000 after a loss of 68,000 in September. Financial firms cut staff by 8,000, after 9,000 reductions the prior month.
Services industries - which include banks, insurance companies, restaurants and retailers - subtracted 61,000 workers after cuts of 105,000 the prior month. Retail payrolls decreased by 39,800 after a decline of 44,200. Government payrolls were unchanged from the prior month, the report showed.
The so-called underemployment rate - which includes part- time workers who'd prefer a full-time position and people who want work but have given up looking - reached a record 17.5 per cent from 17 per cent in September. Temporary workers rose by 34,000, the first gain since December 2007, when the recession began.
Companies are cutting staff on concern the emerging recovery will be cut short as American consumers retrench. Fed policy makers this week said the economy will probably "remain weak for a time" and reiterated a pledge to keep borrowing costs low for an "extended period."
Monthly job losses accelerated after the collapse of Lehman Brothers Holdings in September 2008 and peaked at 741,000 in January.
Voters in Virginia and New Jersey this week took out their frustration over joblessness on the ruling Democrats. The economy and jobs were the most important issues as Republicans won governorships in both states held by Democrats, according to election polls.
President Barack Obama in February signed into law a $787 billion stimulus package aimed at reviving growth and stemming job losses. The administration said last week that the plan was directly responsible for saving or creating about 640,000 jobs.
Bloomberg