US cuts 600,000 jobs in January

WASHINGTON: The recession-scarred US economy lost 600,000 jobs in January, pushing the unemployment rate to a 16-year high, data showed Friday, raising pressure on lawmakers debating a huge stimulus plan.The jobless rate jumped to 7.6 percent from 7.2 percent in December. The number of jobs lost was the worst since 1974 and the fifth highest since records were kept, according to the monthly Labor Department report."The expectations were for a disastrous January for the labor market, and the preliminary numbers exceeded these expectations," said Sophia Koropeckyj at a website.Ian Shepherdson, chief US economist at High Frequency Economics, called the data "another horrific report, showing job losses across the economy.""If ever there were an economy in need of stimulus, this is it," he said. Christina Romer, chair of President Barack Obama's Council of Economic Advisers, said the report showed the largest 13-month job loss since the payroll employment series began in 1939."These numbers, and the very real suffering of American workers they represent, reinforce the need for bold fiscal action," she said in a statement."If we fail to act, we are likely to lose millions more jobs and the unemployment rate could reach double digits."Payroll employment, one of the best indicators of economic momentum, has declined by 3.6 million since the start of the recession in December 2007, with around one-half of the decline in the past three months.The unemployment rate was the highest since September 1992.