The latest unemployment statistics released by the US Department of Labor (DOL) show that the nation is losing jobs in historic proportions, New Jersey Business & Industry Association President Philip Kirschner said today.

Employers eliminated 598,000 jobs in January, the most since the end of 1974, and the number of new claims for unemployment jumped to a seasonally adjusted 626,000, the highest since October 1982, according to DOL.  The unemployment rate rose to 7.6 percent.

"Layoffs and unemployment claims of this magnitude show conclusively that this nation is suffering through a recession of historic proportions," Kirschner said.  "The ripple effects from the meltdown of the financial industry have spread across nearly every industry sector.  At this point, we are looking at a recession that could be as deep and as painful as any we have suffered."

"This does not bode well for New Jersey," Kirschner said.  "The State has strong ties to the financial industry, and its already hard hit manufacturing and construction sectors were the ones that fared the worst in the DOL statistics."  New Jersey's January employment statistics will be released later this month.

Kirschner said these high unemployment levels called for more federal funding for states’ unemployment insurance funds.  New Jersey, like many other states, is facing an automatic payroll tax hike as the balance of its Unemployment Insurance (UI) fund dwindles.  The US House of Representatives has approved $214 million for New Jersey, but more money is needed to avoid a payroll tax hike that could be as high as $700 million.

"A payroll tax increase in a recession this severe would be devastating in New Jersey," Kirschner said.  "Employers are struggling to hold onto as many jobs as they can.  An increase in the payroll tax would make it even more expensive for employers to keep employees and force more layoffs.  We would like to see the US Senate increase unemployment funding."