The unemployment rate in the United States rose to 7.6 percent in January, the highest level since September 1992, as employers slashed 598,000 jobs, the Labor Department reported Friday.

January's drop, far worse than the 524,000 that economists had expected, was followed by revised job losses of 577,000 in December.

The U.S. economy has lost a staggering 3.6 million jobs since December 2007 when the recession began. About one-half of the decline occurred during the past three months.

In January, job losses were large and widespread across nearly all major industry sectors.

Factories cut 207,000 jobs; construction companies got rid of 111,000 jobs; retailers cleared payrolls by 45,000; professional and business services reduced employment by 121,000, and the leisure and hospitality industry axed 28,000 positions.

The reductions offset employment gains in government, health care and education.

The health of the job market is critical for the overall economy to grow. However, employers, affected by a housing collapse, mounting foreclosures and credit tightening, could cut back on hiring further.

Many economists expect the unemployment rate to climb to 8 percent, possibly higher, during the next few months.

Source: Xinhua