Employers trim jobs for third straight month in March while unemployment jumps to 5.1%, a nearly three-year high.
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Last Updated: April 4, 2008: 9:08 AM EDT
Issue #1
* 80,000 jobs lost in March
* Fed official: Economy 'all but stalled'
* Gas sets second straight record high
* Builders: No full recovery until 2010
* Bear deal goes under the microscope
NEW YORK (CNNMoney.com) -- U.S. employers slashed jobs on their payrolls for the third straight month in March and unemployment rose to a nearly three-year high, offering the latest signs that the economy has fallen into a recession.
The Labor Department's much anticipated report showed a net loss of 80,000 jobs in the month, marking the longest period of decline since early 2003.
February's loss was revised to 76,000 jobs. Economists surveyed by Briefing.com had forecast that payrolls would fall by 50,000 in the latest reading.
The job losses in both January and February were revised sharply higher, adding an additional 67,000 job losses to the previous readings. The Labor Department now estimates that the economy has shed 232,000 jobs in the first three months of this year.
The job losses were widespread, with the battered construction sector losing 51,000 jobs and manufacturing employment falling by 48,000. But there were also losses in key service sector industries. Retail employment dropped by 12,000 jobs, and business and professional service employers cut staff by 35,000.
The unemployment rate jumped from the 4.8% reading in February to 5.1%, the highest level since May 2005. Economists had forecast that unemployment would rise to 5%.
The unemployment rate is based on a separate survey of households, rather than the employer survey that produces the closely watched payroll number.
