U.S. Economy Sheds 1.2 Million Jobs In 2008, October Jobless Rate Up 6.5%

Washington, D.C. (AHN) - The U.S. economy registered a huge decline in the nonfarm payrolls to 240,000 in October as unemployment rate for the month jumped to 6.5 percent, the government said Thursday.

The Labor Department report released in Washington showed that the economy lost jobs at the fastest pace since 2001 recession from September's revised loss of 284,000 from 159,000.

October's drop in payroll employment followed decline of 127,000 in August. The economy has lost 1.2 million jobs in the first 10 months of 2008, with more than half of the drop in employment was registered in the past three months.

In October, job losses continued in manufacturing, construction, and other services providing industries. Health care and mining continued to add jobs, the report said.

The unemployment rate increased by 0.4 percentage point, hitting 14-year high, from 6.1 percent reported in the month of September. Over the last 12 months, the unemployment rate has increased by 1.7 percentage points.

In individual sectors, manufacturing employment declined by 90,000 over the month, construction employment dropped by 49,000, retail trade fell by 38,000, financial activities employment declined by 24,000.

Health care employment continued to add in October, with an increase of 26,000 jobs; over the past 12 months, the sector has grown by 348,000. The mining industry added 7,000 jobs in October, with 246,000 jobs in 12 months.

In October, average hourly earnings on private nonfarm payrolls increased by 4 cents, or 0.2 percent, to $18.21, seasonally adjusted, with average weekly earnings were $611.86.

Over the last 12 months, average hourly earnings moved up by 3.5 percent and average weekly earnings climbed up by 2.9 percent.