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http://www.bloomberg.com/apps/news?pid=20601068&sid=aOdse4wKsTok&refer=homeJob Losses Pushing U.S. Economy Into `Significant' Recession
By Rich Miller and Shobhana Chandra
Oct. 4 (Bloomberg) -- The U.S. may be heading for its worst recession in at least a quarter century as the credit crisis forces employers across the country to cut workers and ratchet back spending.
Labor Department figures showed yesterday that payrolls fell by 159,000 in September, the biggest reduction in five years. While the unemployment rate held at 6.1 percent, that's up from 5 percent as recently as April. Some economists, including Goldman Sachs Group Inc.'s Jan Hatzius, said it may rise to 8 percent as the credit crunch hammers consumers and companies.
``We're in this self-reinforcing negative cycle,'' said Mark Zandi, chief economist at the West Chester, Pennsylvania-based Moody's Economy.com. ``It's going to be a very significant recession.''
That's bad news for Republican presidential candidate John McCain as the campaign enters its final month. The jobless rate has only risen twice in the year leading up to elections since World War II and in each case the party in power lost.
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