Labor Department figures show employers in the U.S. have cut more than 63,000 jobs in February. Last month more than 22,000 jobs were lost. It was the biggest decline in five years.
American employers have
cut payrolls for the second consecutive month, axing more than 63,000 jobs in February. This has been the biggest monthly decline in nearly five years, showing the labor markets weakening and a possible recession in the U.S.
Richard DeKaser, chief economist for National City Corp in Cleveland told Reuters:
"This confirms the fears that have been lurking in the financial markets in recent weeks. The probability of a U.S. recession is at more than 50 percent,"
Jane Caron, chief economic strategist, Dwight Asset Management, agreed:
"This employment report removes all doubt that the economy has slipped into a recession,"
The biggest amounts of jobs lost were in the manufacturing, construction and retail sectors.
About 52,000 jobs were lost in manufacturing industries, the largest decline since July 2003 when 92,000 jobs were cut. Construction businesses eliminated another 39,000 jobs; they also cut 25,000 jobs in January correlating with housing industry’s mortgage and loan problems. Since 2006, more than 331,000 construction jobs have been cut.
Retail industries lopped 34,000 people from their payrolls. They fear hard-pressed customers will spend less.
The commissioner of the Labor department’s Bureau of Labor Statistics, Keith Hall, said it will take a long time to regain jobs that were lost so U.S. economy woes will continue for some time.
The lone bright spots occurred in government, education and health services. The government sector added jobs; there were 38,000 jobs added in February. Education and health services added 30,000 jobs last month.
U.S. Sees Biggest Job Loss in Five Years
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