Labor Market Sheds Half-million Jobs in April

May 11, 2009

The labor market shed 539,000 jobs in April, pushing the unemployment rate to 8.9 percent, according to the Labor Department report.

The department said that over 5.7 million jobs were lost since the start of recession two years ago, resulting to a record-high unemployment rate in the country since the Great Depression in 1930s and 1940s.

On the other hand, the Labor Department said the average hourly earnings in April rose by 1¢ which is the lowest increase since 2004 while wage growth is almost in standstill for the first few months of 2009.

Meanwhile, analysts said that job losses affect all sectors except heath services, educational institutions, and government.

According to reports, the manufacturing industry is the worst-hit sector, posting 1.2 million job losses since September. Carmakers, steel manufacturer, and technology industry have also reported slumping sales and massive workforce reduction.

Joblessness is not the only major concern for the government as the housing industry is trembling from the impact of recession. According to realty firm Realtytrac.com, nearly 150,000 Americans lost their homes from foreclosure in April alone.

Despite soaring unemployment and foreclosure rates, the financial market is experiencing slight recovery.

Meanwhile, some analysts criticized the government for its lack of unemployment programs to aid millions of displaced workers while Wall Street companies and other business giants are receiving billion-worth of stimulus package.