U.S. sheds 651,000 jobs hitting 26-year high of 8.1 pct in February

The U.S. economy shed 651,000 jobs in February, pushing the unemployment rate up to 8.1 percent, according to government data released Friday that highlights the worst month for the labor market since 1983.
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The number of job losses was in line with most forecasts but highlighted the dire state of the economy as companies reduce their workforce to cope with the deepening slump.

A poll of 78 economists conducted by Reuters produced a median forecast that employers outside the farm sector slashed 648,000 jobs in February after cutting 598,000 positions in January.Â

The Labor Department also revised up its estimate for losses for the previous two months -- 655,000 in January from 598,000, and 681,000 in December from 577,000. The figures showed December’s losses as the worst on record since October 1949, officials said.
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The jobless rate rose from 7.6 in January to 8.1 percent in February, the highest since December 1983.

 

"The pace of layoffs is fast and furious," Stuart Hoffman, chief economist at PNC Financial Services Group, was quoted as saying by AP. "Were still in the teeth of this recession and the bite has not let up at all."Â