A job seeker fills a form at a job fair held by the job website Monster.com at the Marriott Marquis hotel in Manhattan, New York, the United States, March 5, 2009. (Xinhua File Photo/Gu Xinrong) Photo Gallery>>>

    WASHINGTON, April 3 (Xinhua) -- The unemployment rate in the United States rose to 8.5 percent, the highest level since late 1983, as employers slashed 663,000 jobs in March, the Labor Department reported Friday.

    The March reading for unemployment rate matched analysts' expectations but was above the 8.1 percent jobless rate in February, when employers eliminated 651,000 jobs.

    January's job losses, meanwhile, were revised to 741,000 from 655,000.

    If part-time and discouraged workers are factored in, the unemployment rate would have been 15.6 percent in March, the highest on records dating to 1994.

    The average work week in March dropped to 33.2 hours, a new record low.

    Since the start of the recession in December 2007, payroll employment has declined by 5.1 million jobs, with almost two-thirds of the losses occurring in the last five months.

    "In March, job losses were large and widespread across the major industry sectors," the Labor Department said while releasing the report.

    In March, the manufacturing sector shed 161,000 jobs while construction industries axed 126,000 jobs. Retail trade employment fell by nearly 50,000 over the month.

    Professional and business services got rid of 133,000 jobs while financial companies reduced payrolls by 43,000. Leisure and hospitality firms chopped 40,000 positions.

    Even the government cut jobs last month -- 5,000 of them. Education and health care were the few industries showing any job gains.

    The Federal Reserve, which is the central bank of the United States, says the nation's unemployment rate will remain elevated into 2011. Many economists believe the job market may not get back to normal -- meaning a 5 percent unemployment rate -- until 2013.