In March, payrolls fell by 53,000, according to revised figures, a smaller reduction than the government previously reported. In April, job losses were widespread except in retail and government, which added to their payrolls. More than 95 percent of us still have jobs. The economy grew at an annual rate of 2 percent in the first quarter of this year, but some economists fear that the deteriorating labor market could put a drag on economic growth in the current quarter and possibly throw it into reverse. With unemployment expected to continue rising, some economists worry that consumers might rein in spending and further weaken the economy.
Consumer spending accounts for two-thirds of all economic activity and has helped buoy the economy.
Some companies are coping by sharply cutting production, leading to reductions in workers' hours and overtime, and thousands of layoffs. Yesterday's report showed that manufacturing, which has been bearing the brunt of the economic slowdown, continued to hemorrhage, losing 104,000 jobs last month. Declines since June have totaled 554,000, and two-thirds of those job losses have occurred in the past four months. Construction, which had been adding jobs over the last several months, lost 64,000 jobs in April. Use of this Web site is subject to certain Terms and Conditions .