NEW INFORMATION: Job Market Suffers Another Blow - Spokane, North Idaho News & Weather KHQ.com

NEW INFORMATION: Job Market Suffers Another Blow

(Photo courtesy CNN) (Photo courtesy CNN)

NEW YORK (CNNMoney.com) - The job market suffered another blow last month, as business hiring dwindled and the government continued to shed workers.

Overall, the economy lost a total of 95,000 jobs in September, the Labor Department reported Friday, far worse than expected and down from the previous month, when employers shed 57,000 jobs.

Government job losses, especially temporary census positions, have dragged down the overall number for several months. But in September, sweeping cuts by cash-strapped state and local governments accounted for more than half of the public sector losses.

The government shed a total of 159,000 workers in September, of which 77,000 were census workers. But there was also a surprising jump in job cuts at the state and local level, with a total of 83,000 jobs lost -- the worst decline since 1982.

Of those, 58,000 cuts were teachers and other education workers, as school started back up in September amid budget crises in several states.

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