US unemployment jumps as firms cut back

The US economy lost jobs in April at the fastest rate since the last recession, driving the unemployment rate up, the US government…

The US economy lost jobs in April at the fastest rate since the last recession, driving the unemployment rate up, the US government said today in a report certain to raise fresh fears about the economy's health.

The jobless rate climbed to 4.5 per cent from 4.3 per cent in March, the Labour Department said. The last time the rate was that high was in October 1998.

The jobless rate had been expected to rise to only 4.4 percent.

"You can't give a happy story in this one, on any front," said Sean Callow, currency economist at Idealglobal.com in New York.

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US stock futures, which indicate the future path of the stock market, tumbled and European markets turned negative following the numbers.

Leading the job declines was the beleaguered manufacturing sector, which lost 104,000 jobs. April was the ninth straight month manufacturing has lost jobs.