The U.S. economy lost 524,000 jobs in December, putting an alarming exclamation point on the worst year for job losses since World War II, the U.S. Labor Department reported today.
Nearly 2.6 million jobs were lost in 2008, including 1.9 million in just the past four months. The job losses are the most in any calendar year since 1945.
The nation's unemployment rate rose to 7.2 percent, the highest rate in 16 years. The number of people unemployed increased by 632,000 in December to 11.1 million.
"The economy is the jaws of a depression," said Peter Morici, professor at the University of Maryland School of Business and former chief economist at the U.S. International Trade Commission. "Unemployment increased to 7.2 percent in December; however, factoring in discouraged workers, unemployment is closer to 9.4 percent. Add workers in part-time positions that cannot find full-time employment, and the hidden unemployment rate is 14.5 percent."
The report sent the stock market into another freefall. The largest local decliners in the BizTimes Stock Index this morning were Kohl's Corp. (down $1.67 to $37.66), Manpower Inc. (down $1.60 to $33.12) and Harley-Davidson Inc. (down $1.56 to $16.02). Only a handful of local stocks managed to post meager gains this morning, led by Merge Healthcare Inc. (up 6 cents to $1.35) and Johnson Outdoors Inc. (up 3 cents to $5.65).
Unemployment rate soars to 7.2 percent
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