Pelosi: With 3.6 Million Jobs Lost, We Cannot Afford Delay on Recovery Package

Pelosi: With 3.6 Million Jobs Lost, We Cannot Afford Delay on Recovery Package

Friday, February 6, 2009

Contact:Brendan Daly/Nadeam Elshami, 202-226-7616

Washington, D.C. â€" Speaker Nancy Pelosi released the following statement on this morning’s jobs numbers. In January, American job losses totaled 598,000â€"the worst month of job losses since 1974 and the 13th straight month of job losses.

"This morning’s startling job loss numbers show why it is imperative that the Congress act immediately to pass the American Recovery and Reinvestment Act to stem the rising tide of unemployment and get Americans back to work. The economic recovery package will create and save more than 3 million jobs and put America back on more solid economic footing.

"With a record 3.6 million American jobs lost in just the last 13 months, we cannot afford to delay legislation that will create new jobs and invest in a stronger economy for years to come. We must complete the American Recovery and Reinvestment Act next week so that the President can sign this critical legislation into law."

• JOB LOSSES: In January, American job losses totaled 598,000 â€" the worst month of jobs losses since 1974 and the 13th straight month of job losses. Total job loss since the recession began in December 2007 has climbed to 3.6 million, the largest 13-month job loss on record (series began in 1939). About one-half of this decline occurred in the past 3 months.

• BROAD RANGE OF INDUSTRIES IMPACTED: Factories slashed 207,000 jobs in January, the largest one-month drop since October 1982. Construction companies got rid of 111,000 jobs. Professional and business services chopped 121,000 positions. Retailers eliminated 45,000 jobs. Leisure and hospitality axed 28,000 slots.

• UNEMPLOYMENT & PART-TIME WORK: In January, the unemployment rate surged to 7.6 percent -- the highest level in 16 years â€" up from 4.7 percent in 2007. The number of Americans looking for work climbed to 11.6 million in January â€" 4.1 million more than a year ago and the highest number in 26 years. An additional 3.1 million Americans have been forced into part-time work in the last year.

• LAYOFFS: Leading American companies (including those at Macy’s, Caterpillar Inc., pharmaceutical giant Pfizer, Sprint Nextel Corp., and Home Depot) continue to announce layoffs -- with more than 70,000 workers layoffs announced in one day.

• ECONOMY IN RECESSION: This winter, the Gross Domestic Product fell 3.8 percent in the final quarter of 2008 â€" the largest contraction since the steep recession of the early 1980s. Business investment dropped at a 19 percent pace, the most since 1975. The U.S. economy has officially been in recession since December 2007, already making it the longest downturn since 1981-82. Analysts say this downturn could be the most severe since the Great Depression.

• CONSUMER SPENDING & CONFIDENCE: Consumer spending fell in December for a record sixth consecutive month, capping the worst year since 1961. Consumer confidence slid to another all-time low in January.