US unemployment rate highest since 1992

Figures published today by the US Labor Department have revealed that the rate of unemployment in the US rose from 7.2% in December to 7.6% in January - the highest level since 1992.

The organisation said 11.3 million Americans are now out of work.

Meanwhile, 598,000 jobs were lost in the public and private sectors in January - the most since December 1974. The organisation also revised the estimate of job losses for December, from 524,000 to 577,000.

The US, which is the world’s largest economy, has lost 3.7 million jobs since the recession began in December 2007. However, nearly half of those jobs were lost in the last three months.

President Obama described the situation as ‘serious’ and is now urging Congress to approve his economic stimulus package without delay.

It is hoped that the $819 billion (£572 billion) economic stimulus package will save or create 4 million jobs.

The US Labor Department said 207,000 jobs were lost in the manufacturing sector during January - representing the largest one-month fall since October 1982. This was primarily due to the cut back in the car industry which led to factory job losses.

Meanwhile, 111,000 jobs were cut in the construction industry, while 121,000 positions were lost in professional and business services. Retailers shed 45,000 jobs, while 28,000 jobs disappeared in the leisure and hospitality sector.

In related news, the rate of unemployment in Canada reached 7.2% after 129,000 jobs were axed in January.

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