Mounting layoffs escalate costs

WASHINGTON, Jan. 27 (UPI) -- A Congressional proposal to shore up federal unemployment benefits with an additional $43 billion may not be enough, a U.S. economist said.

"The economy is deteriorating at a faster clip than even the most dreary forecasts had expected," economist Joseph Brusuelas told The New York Times. "At the current trend, $43 billion will not be sufficient should we breach 9 percent unemployment and maybe reach into the double digits," he said.

Job cuts have escalated across the United States and already topped 75,000 in a week just begun, a tally of company announcements indicates.

Monday's announcements included 20,000 at Caterpillar Inc. and 19,500 at drugmakers Pfizer and Wyeth, companies that announced a $68 billion merger plan, as well.

The U.S. unemployment rate is 7.2 percent and appears to be climbing. In Michigan and Rhode Island, the unemployment figure has topped 10 percent, The Washington Post reported Monday.

President Barack Obama urged lawmakers to respond with an $825 billion economic stimulus package.

"These are not just numbers on a page ... these are working men and women whose families have been disrupted and whose dreams have been put on hold," he said.