U.S. Loses 524,000 Jobs in December

The U.S. economy lost more than half a million jobs in December and the unemployment rate rose to a 16-year high last month, capping off a difficult and tense year for American businesses and workers.

According to a Labor Department report Friday, 524,000 jobs were lost in the final month of 2008, and the jobless rate surged to 7.2%, the biggest number since early 1993.

On average, economists were expecting a loss of 525,000 jobs last month, according to a Bloomberg survey. The unemployment rate was forecast to rise, but a bit more modestly, to 7%. ...