U.S unemployment rate hits 7.6%

US unemployment rate jumped to 7.6% and nonfarm payrolls fell by the largest amount in 34 years, the Labor Department reported Friday.

David Greenlaw, an economist for Morgan Stanley said "We look for the unemployment rate to continue to rise to about 9.75% by the end of 2009" , some experts argue it might even soar to 12-13% by end of 2009.

The increasing Job losses may push countries to adopt protectionist measures to save Jobs from being shipped to other countries. US senate has passed a bill which tells companies that use TARP funds should be capped from giving jobs to H1B visa holders. This may come as a blow to Indian IT professionals working onsite in US.

Although experts argue that countries should resist from adopting protectionism as it would further deteriorate the revival of economy, employee unions will push countries and companies to save Jobs for their own Country people.