Payrolls Drop 524,000; Jobless Rate Soars to 7.2%

WASHINGTON — December payrolls plunged another 524,000 and October-November jobs revisions totaled a 154,000 decline. Confirming the poor showing, the civilian unemployment rate jumped 0.4 point to 7.2%, a high since January 1993. The rising unemployment rate came despite a shrinking labor force.

Unemployment rate seasonals were revised, raising the rate for the autumn. But the trend in unemployment remains higher. Revised payroll seasonals and benchmarks are due next month.

For all 2008, job losses totaled 2.6 million, their biggest decline since 2.75 million in 1945. About 1.9 million of the job losses were in the past four months.

December’s payroll composition included: manufacturing off 149,000 (its biggest drop since 2001), construction fell 101,000, retail slid 23,900, leisure fell 22,000, temporary help slumped 81,000, and wholesale declined 30,000. Only health services at a 32,000 increase and government at plus-7,000 were gainers.

Average hourly earnings posted up 0.3% or a 3.7% increase over the year as business services, financial, and utilities wages rose.

— Market News International

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