Canada shed a much worse than expected 129,000 jobs in January, sending unemployment up 0.6 percent to 7.2 percent. The jobs loss was worse than the grimmest monthly showings of the downturns of the 1980s and 1990s, Statistics Canada said in a statement. And the January drop in employment topped by far the 40,000 job losses analysts had forecast. They predicted unemployment would edge up to 6.8 percent from 6.6 percent in December. That was Canada. What about America?  <

In America, this mornings report was not good at all! Unemployment in the U.S. climbed in January to the highest level since 1992 and payrolls dropped more than forecast as the recession showed no sign of abating. The jobless rate rose to 7.6 percent from 7.2 percent in December, the Labor Department said today in Washington. Payrolls fell by 598,000, the biggest monthly decline since December 1974, after dropping by 577,000 in the previous month.

So, rejoice Canada. You have a lower rate of unemployment!   :-(

“We’re losing jobs at an alarming pace and bracing for more weakness,” Scott Anderson, senior economist at Wells Fargo & Co. in Minneapolis, said before the report. “The private sector is flat on its back at this point. The government needs to step in with a stimulus, the sooner the better.” And just who is it that’s going to hire whom for what at the Federal level?

The loss of jobs, ranging from manufacturers including Caterpillar Inc. to retailers such as Macy’s Inc., is shattering consumer confidence and crippling spending. President Barack Obama is likely to use the first employment report since taking office to prod lawmakers into agreeing on a compromise economic stimulus package by the end of this month. Payrolls fell by 524,000 in December and 584,000 in November. It would be the first time since records began in 1939 that job cuts exceeded 500,000 in three consecutive months. The economy lost about 2.6 million jobs last year.

The real problem in the U.S. labor market today isn’t layoffs. It’s a hiring freeze that is gripping most work places – and has not gotten nearly as much attention as the job cuts. “The hiring rate has caved. That’s why the job market is as bad as it is,” said Mark Zandi, chief economist with Moody’s Economy.com. “Given this low hiring rate, unemployment would still rise even if layoffs were falling.”

Is there any economic GOOD NEWS out there?

If you still have a job there is!

Image taken on 2008-06-24 22:04:37. Image Source. (Used with permission)