Hospitality Career E-Mag: NEWS| Intl| Unemployment Rate Hits Highest Point in 16 Years

The Labor Department report showed the nation's unemployment rate bolted to 7.2 percent in December, the highest level in 16 years, as employers slashed 524,000 jobs. The labor market is expected to remain weak as mass layoffs continue.

In 2008, the economy lost a net total of 2.6 million jobs, the most since 1945, when nearly 2.8 million jobs were lost, though the number of jobs in the U.S. has more than tripled since then.

The 7.2 percent unemployment rate is up from 6.8 percent in November. It is the highest since January 1993. All told, 11.1 million people were unemployed in December.

Job losses in both October and November turned out to be worse than previously estimated. Revised figures showed that employers slashed 584,000 positions in November and another 423,000 in October.

Job losses were widespread in December. Construction companies slashed 101,000 jobs, and factories cut 149,000 jobs. Professional and business services got rid of 113,000 jobs. Retailers eliminated nearly 67,000 jobs, and leisure and hospitality reduced employment by 22,000. All told, those losses dwarfed gains in education, health care and government.