Jobless rate tops 10 pct. for first time since '83

Associated Press ,  Washington   |  Fri, 11/06/2009 10:44 PM  |  World

The US unemployment rate has surpassed 10 percent for the first time since 1983 - and is likely to go higher.

Nearly 16 million Americans can't find jobs even though the worst recession since the Great Depression has apparently ended. Many economists worry that persistently high unemployment could undermine the recovery by restraining consumer spending, which accounts for 70 percent of the economy.

Te Labor Department said Friday that jobless rate rose to 10.2 percent, the highest since April 1983, from 9.8 percent in September. The economy shed a net total of 190,000 jobs in October, less than the downwardly revised 219,000 lost in September, but more than economists expected.

The jump in the joblessrate reflects a sharp increase in the tally of unemployed Americans, which rose to 15.7 million from 15.1 million. The net loss of jobs occurred across most industries, from manufacturing and construction to retail and financial. That tally is based on a separate survey of businesses.

Economists say the unemployment rate could climb as high as 10.5 percent next year because employers remain reluctant to hire.

Christina Romer, whheads President Barack Obama's Council of Economic Advisers, said the rate was not unexpected but was still a disappointment.

"It's a stark reminder of how much work remains to be done to get people back to work," she said in an interview with The Associated Press.

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