Unemployment Rate Hits 6.1%; Worst in 3 Years

The nation’s unemployment rate shot up in December to its highest level in more than three years, hitting 6.1% as more than 1 million people joined the ranks of the jobless since June, the government said today.

California’s jobless rate surged to 7.1%, up from 6.7% in November and 5.3% a year ago.

The worst three-month stretch of job losses since the depths of the 1981-82 recession hit at the end of 1990, as 515,000 jobs were lost nationally during the final quarter of the year, the Labor Department said.

Last month’s rate was up 0.2% from November’s 5.9% level. Unemployment has now risen 0.8% since June--its most rapid rise in eight years.

December’s 6.1% rate was the highest since a similar 6.1% reading in July, 1987.

Some analysts saw a glimmer of hope in today’s report because last month’s job losses were not nearly as dramatic as those of October and November.

However, others said it is too early to tell how deep the recession could be.

Today’s report showed that last month, payrolls fell by 76,000, a more moderate decline than the 259,000 jobs lost in November.