The U.S. unemployment rate jumped back to highest level since the most recent recession as businesses slashed thousands of jobs from payrolls in November, the government said Friday.
The Labor Dept. said unemployment rose to 6.0% in November from 5.7% in October. Employers cut 40,000 jobs from non-farm payrolls after adding a revised 6,000 in October.
The sectors with the biggest job cuts were manufacturing, which cut 45,000 jobs, and retail, which cut 39,000 jobs. Job growth was found in services, which added 50,000 jobs, and the government sector, which added 8,000.
Truck and engine makers warned that layoffs would be necessary after EPA's clean engine laws went into effect October 1.
Despite the government's report yesterday that new claims for unemployment benefits plunged last week to their lowest level in 21 months, the government said it is the highest unemployment rate since April. The last time it reached 6.0% was August 1994.
The Labor Dept. reported that new applications for unemployment insurance fell a seasonally adjusted 13,000 to 355,000 for the workweek ended November 30.