Unemployment Rate Reaches 14-Year High

"A stumbling economy seems to have been kicked down the stairs," said Lawrence Mishel, president of the Economic Policy Institute. "This is what a deep recession looks like."

According to the Labor Department, the U.S. labor market has dwindled in the past three months, with 651,000 jobs lost, driving the unemployment rate up to 6.5%, the highest climb in 14 years.

In October, the U.S. nonfarm payrolls fell by 240,000. Payrolls losses in September were adjusted down to 284,000, the largest job loss in seven years. According to a survey of households, unemployment went from 603,000 in October to 10.1 million, the highest level in 25 years. In the past six months, unemployment has surged by 2.45 million, the largest increase since 1975. According to a survey of work sites, so far in 2008, a total of 1.18 million jobs have been lost and payrolls have fallen for 10 straight months.

Many economists believe the jobless rate will probably rise to nearly 8% next year, last seen in the early 1980s. "While the labor market is already in its worst condition since 2001, we expect it to weaken further," wrote Harm Bandholz, economist for UniCredit Markets. The unemployment rate has risen by 1.5% over the past six months, the highest climb since 1982. The number of workers forced into part-time hours is now 11.8%, the highest in 15 years, rising by 645,000 in October to 6.7.