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US Economy Loses More Jobs
Date: 2/6/2009 8:37:43 AM Sender: VOA News
US Economy Loses More Jobs
By VOA News
06 February 2009

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Work coordinator, assists call-in job seeker at Burbank Workforce Connection in California, 27 Jan 2009

The U.S. economy posted the largest job loss in decades in January, while the unemployment rate rose sharply.

The world＇s largest economy had a net loss of 598,000 jobs as the recession hammered the factory and construction sectors.

Friday＇s report from the Labor Department says unemployment in January hit 7.6 percent. That is four-tenths of a percent worse than the previous month and the worst level in 16 years.

Economists say the grim unemployment situation is likely to ripple through the economy, hurting consumer confidence and the consumer spending that drives two-thirds of U.S. economic activity. It may also raise the number of people who default on loans, putting more strain on the battered housing sector.

Friday＇s unemployment report follows Thursday＇s news that the number of Americans signing up for unemployment benefits hit a 26-year high last week.

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