2008 worst year for job loss since World War II (2nd Roundup)

Jan 9, 2009, 17:30 GMT

Washington - The United States lost 2.6 million jobs in 2008, the most for a single year in over six decades, as employers in December shed more than 500,000 jobs and the unemployment rate soared to 7.2 per cent, the US Labour Department reported Friday.

The jobless rate was at its highest level in 16 years as the recession has hit employers across most major industries, and as president-elect Barack Obama hurries to have a stimulus plan ready to stave off the freefall, when he takes office January 20.

'Today's jobs report only underscores the need for us to move forward with a sense of urgency and common purpose,' Obama said.

'There is a devastating economic crisis that will become more and more difficult to contain with time,' he added. 'For the sake of our economy and our people, this is the moment to act, and to act without delay.'

The Bureau of Labour Statistics reported that employers sacked 524,000 people in December. There were 'large and widespread' job losses 'across most major industry sectors,' the bureau said. The unemployment rate was up from 6.8 per cent in November.

Most of the jobs lost in 2008 were in the second part of the year, the worst since 1945, the final year of World War II. In the last four months of 2008 alone, about 1.9 million jobs were lost.

Obama is seeking a stimulus package of a reported range from 800 billion to 1 trillion dollars and has begun talks with Congress to ensure it is passed as quickly as possible. Obama has faced resistance from fellow Democrats who also want to roll back President George W Bush's tax cuts for the wealthiest Americans.

Republicans have criticized the size of Obama's rescue plan, which is meant to pump money into infrastructure projects, education, healthcare, develop alternative energy sources, and save or create at least 3 million jobs.

Hardest hit were teenagers, with a 20.8-per-cent unemployment rate, followed by blacks, 11.9 per cent, and Hispanics, 9.2 per cent. The unemployment rate for whites was 6.6 per cent, followed by 5.1 per cent for Asian Americans.