US suffers biggest job losses since 1974

The overall unemployment rate in the US, which is calculated using slightly separate figures, rose to 7.6pc, the highest in 16 years. 11.3m Americans are now out of work.

Ian Shepherdson, chief US economist at High Frequency Economics, agreed, saying: "If ever there were an economy in need of stimulus, this is it.” Mr Sheperdson called the data set "another horrific report, showing job losses across the economy."

The new figures mean that 3.6m Americans have now lost their job since the US recession began in December 2007, with a rapid acceleration in losses in the last three months.