U.S. Loses 80,000 Jobs, Unemployment Rate Increases

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from Bloomberg:



U.S. Loses 80,000 Jobs, Unemployment Rate Increases (Correct)

By Bob Willis

April 4 (Bloomberg) -- The U.S. lost jobs for a third consecutive month in March and the unemployment rate rose to the highest since September 2005, pointing to an economy that may already be in a recession.

Payrolls shrank by 80,000, more than forecast, after a decrease of 76,000 in February that was more than initially reported, the Labor Department said today in Washington. The jobless rate rose to 5.1 percent, the highest since September 2005, from 4.8 percent.

Job losses have shaken consumer confidence, contributing to a weakening in spending that has almost stalled growth. The report reinforces forecasts that the Federal Reserve, whose Chairman Ben S. Bernanke this week acknowledged the economy may face a recession, will need to do more to prevent further deterioration.

``The odds of a recession are now very high,'' Chris Rupkey, chief financial economist at Bank of Tokyo-Mitsubishi UFJ Ltd. in New York, said before the report. ``It will be a miracle if the economy is able to keep growing as the lack of a paycheck will put a brake on consumer spending. The Fed still has its work cut out for it.''

Treasuries climbed after the release, with 10-year note yields falling to 3.53 percent at 8:34 a.m. in New York, from 3.59 percent late yesterday.

Economists had projected payrolls would fall by 50,000 following a previously reported 63,000 drop in February, according to the median of 79 forecasts in a Bloomberg News survey. Economists' forecasts ranged from a decline of 150,000 to a gain of 65,000. .....(more)

The complete piece is at: http://www.bloomberg.com/apps/news?pid=20601087&sid=aZhk5o0bJ6II&refer=home