US unemployment at 26-year high

During the same period,the jobless rate soared to a 26-year-high of 8.5 per cent from 8.1 per cent. Officially,America entered into recession in December 2007.

“Non-farm payroll employment continued to decline sharply in March (-663,000),and the unemployment rate rose from 8.1 to 8.5 per cent.

“… Since the recession began in December 2007,5.1 million jobs have been lost,with almost two-thirds (3.3 million) of the decrease occurring in the last 5 months,” the Department of Labor said in a statement today.

In yet another stark reminder of the worsening economic situation,the number of unemployed people jumped by 6,94,000 to 13.2 million last month.

With the recession deepening,many of the companies are slashing jobs as part of their efforts to cut down on costs.

The statement added that over the past 12 months,the number of unemployed people has grown by about 5.3 million.

During March,the rate of jobless for adult men stood at 8.8 per cent while it was 7 per cent for adult women. Last month,the unemployment rate for whites reached 7.9 per cent,Hispanics (11.4 per cent),blacks (13.3 per cent) and teenagers (21.7 per cent).

According to the Labor Department,the number of long-term unemployed ¿ those jobless for 27 weeks or more ¿ shot up to 3.2 million over the month. It has risen by about 1.9 million since December 2007.

About the unemployment situation in March,Hilda L Solis,the US Secretary of Labor said “today’s numbers show that we have more work to do”.

“The Labor Department continues to actively support workers during this difficult time. We have provided billions of dollars to increase the level of unemployment benefits and extend their duration,” Solis added.

The Secretary of Labor said the government has provided states with USD 7 billion in incentives to expand the reach of unemployment insurance,in addition to distributing USD 4 billion to increase the opportunities for workers to receive training.

Solis noted that Americans who have lost their jobs worry about paying the mortgage,keeping their health insurance and paying tuition fees.

“Families across our country are stressed and hurting,and they are at the center of the administration’s efforts to provide real relief and opportunity for the future,” Solis said.

The ADP National Employment report released on Wednesday revealed that private sector companies in the US slashed a staggering 7,42,000 jobs.

“Non-farm private employment decreased 7,42,000 from February to March 2009 on a seasonally adjusted basis,” the report said.

Further,the estimated change in employment from January to February was revised downwards by 9,000 to 7,06,000 from a decline of 6,97,000,it added.

For the week ended March 28,the initial claims for unemployment benefits in the US soared to 6,69,000,the highest in 26 years. The claims for jobless benefits from the state climbed by 12,000 to 6,69,000.