The U.S. unemployment rate shot up in April as the number of layoffs increased to its highest level in a decade The U.S. unemployment rate shot up in April as the number of layoffs increased to its highest level in a decade. The report finds 223,000 jobs were lost - the biggest decline since 1991. It was the second month in a row businesses slashed their payrolls.
Analysts say layoffs announced months ago are beginning to have an impact on the U.S. economy.
They warn the decline in employment may negatively affect U.S. consumer spending, which could increase the risk of a recession - a period of at least two quarters of negative economic growth. Economists expect the unemployment report will increase pressure on the U.S. Federal Reserve to lower interest rates in an effort to stimulate the economy. The Fed has cut interest rates sharply this year to try to avoid a recession. Many analysts expect another rate reduction when Central Bank policymakers meet May 15.