U.S. Unemployment Rate Jumps to 8.1%

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Jeff Kowalski/Bloomberg News

The U.S. unemployment rate jumped to the highest level in 25 years in February, rising to 8.1%, from 7.6% in January, the Labor Department said Friday.

Payrolls plunged by 651,000, marking the third straight time jobs have plunged by more than 600,000.

January’s payroll decline was revised to 655,000, from a previous 598,000, and December’s to 681,000, from a previously reported 577,000.

U.S. employers have now cut about 4.4 million jobs since the recession began in December 2007.



Economists had forecast a decline of 650,000 jobs for February and an unemployment rate of 7.9%.

Factory payrolls fell by 168,000 after falling by 257,000 in January, Labor said.

Service industry jobs fell by 375,000, following a 276,000 cut the previous month.