The U.S. economy unexpectedly lost jobs in January for the first time in more than four years, adding to the case for the Federal Reserve to lower interest rates further next month to head off a recession.
Payrolls fell by 17,000 after an 82,000 gain in December that was larger than initially reported, the Labor Department said today in Washington. The jobless rate declined to 4.9 percent from 5 percent in December.
The drop in payrolls, in the wake of tighter credit, a deeper housing slump and a stumbling stock market, is the clearest sign yet that the U.S. expansion is at risk. Payrolls are one of the indicators, along with wages, production and sales, that help determine the start of economic contractions.
Yes, Virginia. I think the expansion is in danger.
