Nonfarm Payrolls Sank 17,000 in January, First Drop in Four Years

U.S. employment unexpectedly tumbled last month for the first time in more than four years, fueling worries that the U.S. economy, which already limped into 2008, might soften further or even slip into recession in coming months. Nonfarm payrolls fell 17,000 in January, the Labor Department said Friday, the first drop since August 2003, when payrolls slid 42,000. Gains in services like health care, retail trade and leisure offset declines in other sectors including manufacturing, construction, financial services and government. The unemployment rate fell, as expected, to 4.9% from 5%.