U.S. lost 263,000 jobs in September; unemployment hits 9.8 percent

The nation's worst job slump in generations continues. The U.S. economy lost 263,000 jobs in September, the Labor Department announced Friday, with the nation's unemployment rate rising to 9.8 percent from 9.7 percent, the highest rate since the early 1980s.

A Bloomberg News economists survey had forecast a loss of 170,000 jobs in September and the unemployment rate to hit 9.8 percent. The economy shed a revised 201,000 jobs in August, down from the previously-released 216,000; however, July's job loss total was revised higher, to 304,000 from 276,000. During the recession -- the nation's longest since the end of World War II -- the U.S. economy has lost a staggering 7.3 million jobs, and has shed jobs for 21 straight months.