It was bad. February’s job losses – at 651,000 – fell well short of the apocalyptic scare stories that had warned of a million man month. But large downward revisions to past months, taking the unemployment rate to 8.1 per cent, blackened moods. If the labour market deteriorates at the rate of the past three terrible months, unemployment will hit double digits this summer. That remains an extreme possibility. But, as previous months consistently proved worse than originally thought, faith in the idea that job losses peaked in December (as the figures suggest) is weakening. Earnings, once resilient, look vulnerable. Average hourly earnings grew at 3.6 per cent year on year, perhaps supported by labour agreements struck during last year’s inflation scare. As the ranks of the unemployed swell, however, wages will be next to buckle.