Job losses: Worst in 5 years
Payrolls sink in February, fueling recession anxiety. Unemployment rate
declines, but that's because there are fewer people in the workforce.
By Chris Isidore,
CNNMoney.com senior writer
Last Updated: March 7, 2008: 12:09 PM EST
NEW YORK (
CNNMoney.com) -- Employers made their deepest cut in staffing in
almost five yearsin February, the Labor Department reported Friday.
There was a net loss of 63,000 jobs, which is the biggest decline since March
2003 and weaker than the revised 22,000 jobs lost in January. Economists had
forecast a gain of 25,000 jobs.
The weak report fueled already mounting recession fears and is likely to keep
the Federal Reserve cutting interest rates further when it meets later this
month.
"Based on today's Employment Report, if we are not in a recession, it is a
darned good imitation of one," said Kevin Giddis, managing director of fixed
income at Morgan Keegan. "We are in an unprecedented real estate and credit
crisis that is whipping its way through the U.S. economy like a Midwestern
tornado."
