US labor department released another sobering report on Friday showing 5.24 lakh job loss in December, bringing the total 2008 job loss count to 26 lakhs, biggest since 1945.

In last four months US economy lost around 19 lakh jobs. But analysts predict that worst is yet to come as US economy is expected to shed more jobs in the coming months.

ING Bank analyst Rob Carnell wrote in a research note that possibility of another 10 lakh job loss in 1-2 months time.

At the same time unemployment rate bolted to 7.2 percent in December, the highest level in 16 years compared to 6.8 percent one month back.

Apart from cutting jobs employers are cutting workers' hours. The average work week in December fell to 33.3 hours, the lowest level on records dating to 1964.