The US Labor Department's recent report revealed that even though recession is apparently slackening its hold on the country's economy, the unemployment rate in September increased to 9.8 percent, marking its highest level since June 1983.

That employers slashed far more jobs than anticipated is evident from the fact that while analysts surveyed by Thomas Reuters were expecting job losses up to 180,000, the actual figures for the month stood at a whopping 263,000.

Another record of sorts pertains to the number of people who have been out of work for six months or more - the number having soared to a record high 5.4 million, and they now accounting for as much as 36 percent of the country's unemployed!

The government report also underlined that the embryonic economic recovery may well be threatened by another spell of restrained spending on the part of the consumers, who are grappling with job losses and stagnant incomes.

The relentless rise in the unemployment figures might spell political problems for President Barack Obama, who, in February, pushed through an ambitious $787 billion stimulus package, in an attempt to "save or create" 3.5 million jobs by 2010-end. 

Commenting on the jobless scenario, President Obama said: "Today's job report is a sobering reminder that progress comes in fits and starts, and we're going to need to grind out this recovery step by step."