The recession grew deeper in January, as the nation's unemployment rate jumped to 7.6 percent and nonfarm payrolls fell by the largest amount in 34 years, the U.S. Department of Labor reported today.
Nonfarm payrolls fell by a seasonally adjusted 598,000 in January, on the heels of a revised loss of 577,000 in December, the department said. January marked the largest payroll loss since December of 1974.
About 3.6 million jobs have been lost since the recession began just over a year ago. About half of the jobs disappeared in the past three months.
Today's gruesome labor report added fuel to the debate in the U.S. Senate, which is contemplating President Barack Obama's American Recovery and Reinvesment Plan.
"I hope they share my sense of urgency and draw the same unmistakable conclusion: The situation could not be more serious. These numbers demand action," Obama said today.
Senate Republican leader Mitch McConnell of Kentucky said the GOP is ready to support a bill, "But we will not support an aimless spending spree that masquerades as a stimulus."
McConnell added, "Putting another $1 trillion on the nation's credit card isn't something we should do lightly. We need to get a stimulus. But more importantly, we need to get it right."
Obama said, "We can't embrace the losing formula that says only tax cuts will work for every problem we face; that ignores critical challenges like our addiction to foreign oil, or the soaring cost of health care, or falling schools and crumbling bridges and roads and levees. I don't care whether you're driving a hybrid or an SUV - if you're headed for a cliff, you've got to change direction."
The stock market surged today, as investors shrugged off the bleak jobs report and expressed optimism that some type of bipartisan stimulus plan would be reached. The Dow Jones Industrial Average gained more than 190 points this morning.
Locally, stocks in the BizTimes Stock Index also rallied today. The largest local gainers this morning were Joy Global Inc. (up $1.81 to $23.97), Bucyrus International Inc. (up $1.25 to $17.70) and Johnson Controls Inc. (up $.20 to $14.02). The largest local decliners this morning were Badger Meter Inc. (down $1.26 to $29.25) and Koss Corp. (down 25 cents to $11.50).
Unemployment rate jumps to 7.6 percent
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