Payrolls drop by most in 5 years; more pain ahead

Friday, 03 October 2008 19:21:55

By The Associated Press -

THE LATEST: Employers slashed 159,000 jobs in September, the most in more than five years and the ninth month in a row of nationwide job losses. So far this year, the economy has lost a staggering 760,000 jobs.

WHAT IT MEANS: With jobs harder to come by and the growth in workers' wages slowing, consumers are expected to hunker down further, spelling even more problems for the troubled economy.

THE OUTLOOK: More pain ahead _ even with Congress' unprecedented $700 billion financial bailout. The unemployment rate _ now at 6.1 percent _ probably will climb higher and employers are expected to keep cutting jobs in the months ahead. The economy may have stalled already _ or actually slid into reverse _ in the just-ended third quarter.