U.S. job losses unexpectedly Exceeded

U.S. job cuts exceeded unexpectedly on September, 2009 and the unemployment rate reached the highest level since 1983. The Labor Department figures prompted Barack Obama to say he’s working to “explore any and all additional measures” to spur growth, and underscored forecasts for the Federal Reserve to keep its benchmark interest rate near zero through 2010.

It is reported that Payrolls dropped by 263,000 in September, exceeding the median forecast in Bloomberg’s survey, with losses extending from cash-strapped state and local governments to retailers to builders. The jobless rate rose to 9.8 percent from 9.7 percent in August, while working hours matched a record low.

Chris Rupkey, the Cheif financial economist at Bank of Tokyo-Mitsubishi UFJ Ltd. said in New York that “This has the potential to put a big stop sign on the road to economic recovery,”. He continued “The harder jobs are to get, the harder and longer this road to recovery is going to be.”

In another report, the Standard & Poor’s 500 Index closed down 0.5 percent at 1,025.21 in New York trading, losing 1.8 percent for the week. Ten-year Treasury yields rose to 3.22 percent late yesterday from 3.18 percent the prior day.

Bloomberg News | Mass Article Control |