Jobless rate surges to 7.6%, highest since '92

Mass layoffs across almost every line of business catapulted the nation's unemployment rate to 7.6 percent in January and lent more urgency to Washington's attempt to quickly hammer out an economic stimulus package.

Friday's data from the Labor Department was a laundry list of misery milestones: The most jobs lost in one month since 1974, the highest unemployment rate since 1992, the largest one-month drop in factory jobs since 1982 and the most jobs lost in 12 months since the goverment began keeping records in 1939.

The report showed the terrible toll the drawn-out recession is having on workers and companies. It also puts even more pressure on President Barack Obama to revive the economy.

"These numbers demand action. It is inexcusable and irresponsible for any of us to get bogged down in distraction, delay or politics as usual while millions of Americans are being put out of work," Obama said bluntly. "Now is the time for Congress to act."

He added that the current unemployment rate equals 3.6 million Americans who wake up wondering how they are going to pay their bills.

"If we don't do anything, millions more jobs will be lost," the president warned in remarks at the White House as he introduced a new Economic Recovery Advisory Board, headed by former Federal Reserve Chairman Paul Volcker.

The board will offer independent advice in regular briefings to the president, vice president and their economic team.

The nearly $1 trillion stimulus package is Obama's top legislative priority in his early presidency.

Bad as the report was, the stock market expected worse. Wall Street's major indexes rallied about 2 percent after the news on rising hope that the nation's deteriorating economy would spur lawmakers to swiftly pass the package.

Recession-battered employers eliminated a net 598,000 jobs in January, the most since the end of 1974. That was much worse than the 524,000 that economists expected. Job reductions in November and December also were deeper than previously reported.

With cost-cutting employers in no mood to hire, the unemployment rate bolted to 7.6 percent in January, the highest since September 1992. The increase in the jobless rate from 7.2 percent in December also was worse than the 7.5 percent rate economists expected.

All told, the economy has lost a staggering 3.6 million jobs since the start of the recession in December 2007. About half of the decline has occurred in the past three months.

"Companies are in survival mode and are really cutting to the bone," said economist Ken Mayland, president of ClearView Economics. "They are cutting and cutting hard now out of fear of an uncertain future."

Factories slashed 207,000 jobs in January, the largest one-month drop since October 1982, partly reflecting heavy losses at plants making autos and related parts. Construction companies got rid of 111,000 jobs. Professional and business services chopped 121,000 positions. Retailers eliminated 45,000 jobs. Leisure and hospitality axed 28,000 slots.

Those reductions swamped employment gains in education, health services and government.

Just in the 12 months ending January, an astonishing 3.5 million jobs have vanished, the most on record going back to 1939, although the total number of jobs in the economy has grown significantly since then.

The average work week in January stayed at 33.3 hours, matching the record low set in December.

With no place to go, the number of unemployed workers climbed to 11.6 million.

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