U.S. unemployment reached its highest since 1983 in September, climbing to 9.8 percent. Last month’s losses bring the total number of jobs lost since the recession began in December 2007 to 7.2 million, the biggest decline since the Great Depression.

Bloomberg reports:

The figures … underscore forecasts for the Federal Reserve to keep its benchmark interest rate near zero through next year. Stocks fell and the dollar weakened against the euro.”You will see the economy pulling back,” Richard Yamarone, head of economic research at Argus Research Corp. in New York and most accurate forecaster surveyed for the payrolls loss, said in a Bloomberg Television interview. Payrolls may not return to their previous peak for years to come, he added.

The report also showed that payrolls dropped by 263,000 in September, a worse figure than expected. Working hours also dropped to a record low of 33 hours a week, painting an even gloomier picture for the Unites States.

Confidence in the U.S. economy is taking a hit internationally, with the dollar falling against the euro and yen with the news.

If Yamarone is right and payrolls remain down, consumer spending—which accounts for 70 percent of the U.S. economy—is unlikely to recover either.

For more on what the Trumpet forecasts for the U.S. economy, read our article “Should Americans Prepare for a ‘Summer of Rage’?”