The Labor Department revised first two months of year’s job losses to a total of 152,000 from a previous estimate of 85,000. The March unemployment rate jumped to 5.1 per cent from 4.8 per cent, highest since a matching rate in September 2005.

The March job report was more bleak than expected. Economists forecast a decline of 60,000 in non-farm payrolls and a rise in the unemployment rate to 5 per cent, the highest since September 2005, from 4.8 per cent.
During the first quarter of this year job losses averaged 77,000 a month, compared to average monthly gains of 76,000 in the last half of 2007, according to Keith Hall, Bureau of Labor Statistics Commissioner.

Job losses were widespread during the month, with the biggest losses in the construction and manufacturing sectors. Job losses have shaken consumer confidence, contributing to a weakening in spending that has almost stalled growth. The report reinforces forecasts that the Federal Reserve, whose Chairman Ben S. Bernanke this week acknowledged the economy may face a recession, will need to do more to prevent further deterioration.
Revisions subtracted 67,000 jobs from the originally reported figures for January and February.  The last time the economy lost jobs for at least three consecutive months coincided with the start of Iraq War in 2003. The jobless rate was forecast to rise to 5 per cent from 4.8 per cent in February, the survey said. Factory payrolls shrank by 48,000 workers, the biggest decrease since July 2003, Labour said.