Washington, DC, Mar. 7--The nation's unemployment rate increased to 5.8% in February as companies cut 308,000 jobs, the biggest one month slide since the 2001 terrorist attacks.
The overall civilian jobless edged up a tenth of a percent from the 5.7% figure recorded in January, according to the Labor Department.
Economists had predicted the modest rise, but did not expect the loss of jobs that wiped out large hiring gains the month before. Analysts actually had forecast job gains of 20,000.
Instead, employers cut the most jobs since November 2001, when they dropped 327,000 from their payrolls following the attacks on the World Trade Center and Pentagon.
Nearly two million jobs have been lost since hiring peaked in March 2001.
In February alone, 8.5 million people were unemployed, a 2.8 million increase since the fall of 2000. The number of long term jobless tripled during this period. About 1.9 million people have been jobless for 27 weeks or more, comprising 22% of total unemployment.
Businesses have been wary of making long term hiring and spending commitments as the economy struggled toward recovery. But any improvements in the job market now appear to be quashed as the nation inches toward war with Iraq.
It was that same climate of uncertainty that dampened business confidence in the wake of the Sept. 11 terrorist attacks, and which soured job prospects for the unemployed.
Job losses in February were widespread. The nation's factories were hit particularly hard last month, which was not unexpected. Manufacturing employment has been decimated since April 1998 and some 2.5 million jobs have been lost, most of them since the recession started in March 2001.
A sharp drop in construction employment wiped out gains in January. Since the recession began, construction jobs have been cut 3.8%, substantially less than in other industries.
Employment in services fell by 86,000 last month, the largest monthly job loss since the fall of 2001. In that category, stores, restaurants and bars accounted for most of the decline. Hiring in amusement and recreation services, and at hotels and lodging places, all fell considerably short of their normal February levels.
The healthcare industry, where growth has been consistent, again added jobs last month, although the increase was the smallest since 1999.
Hiring also continued in mortgage banking, which has added 122,000 jobs since January 2001, reflecting a mortgage refinancing spree and general strength in the housing market.
