Friday sees the release of the US Labor Department's monthly jobs data which is likely to show that the number of jobs lost in in the US during 2008 was the highest since 1945.

According to the median estimate of economists surveyed by Bloomberg an additional 500,000 jobs were lost in December, resulting in a cumulative reduction in headcount of 2.4 million in the year.

Despite Barack Obama's grand plan for an extensive fiscal stimulus, the US economy will continue to slash jobs throughout at least the first half of 2009 and for possibly longer.

The unemployment rate, which stood at 6.7% in November, is likely to have climbed to 7% in December, the highest level since 1993. It would not be surprising to see this figure edge towards double digit figures especially if the fiscal stimulus and cuts to interest rates don't have the desired effect.