MercoPress. South Atlantic News Agency

US economy loosing jobs at fastest rate in five years

The United Status economy lost jobs in September at its fastest pace in more than five years, --with unemployment reaching 6.1%--, and the outlook from economists and surveys is grim despite Congress' emergency action Friday to stabilize the financial system.

The US Labor Department's monthly report, released Friday, showed that 159,000 non-farm payroll jobs had been slashed, more than double the 73,000 jobs lost in August. First-time claims for unemployment benefits had increased last week to the highest level since the period after the 2001 terror attacks. A deeper look at the labor data, some economists said, showed the "underemployment" rate had jumped to 11% â€" the highest level in 14 years â€" and the number of "discouraged workers" not seeking employment work also climbed. Labor "We're in a jobs recession that's going to escalate because there is no obvious factor that's going to increase spending right now," said Stephen Levy of the Palo Alto-based Center for the Continuing Study of the California Economy. "There's not going to be a Great Depression, but there won't be a quick turnaround either. A substantial turnaround is probably two years away". Manufacturers shed 51,000 jobs, construction companies cut 35,000 jobs, retailers lost 40,000 posts, business services axed 27,000 positions and financial services slashed 17,000 jobs. There were also 17,000 posts cut in the leisure and hospitality sector. The number of jobs being shed outstripped hiring gains by the government in education, health and other sectors. Jared Bernstein, senior economist from the liberal Economic Policy Institute in California offered wry commentary about the recent convulsions among Wall Street investment firms and Washington's bailout legislation: "We interrupt the financial meltdown to remind you that the US payrolls have been contracting for nine months in a row." University of Maryland's Peter Morici, former chief economist of the U.S. International Trade Commission said that September's job losses were "much worse than was expected". He also noted an irony: The United States has lost jobs every month since December, even as numbers for productivity and gross domestic product have continued to grow. "Quite simply, ordinary US citizens are not benefiting from the strong economic growth accomplished in recent years â€" and with housing prices and retirement accounts dropping in value."