The U.S. economy was jolted last month.

Government figures show the jobless rate jumped to a 5-year high, surprising even the experts.

Diana Alvear puts the numbers in perspective.

Stocks rebounded Friday afternoon-- despite devastating unemployment numbers from the Bureau of Labor Statistics, August saw a massive one-month jump in job losses, pushing the unemployment rate to 6.1, the highest it's been in five years.

Employers slashed 84,000 jobs, more than economists had predicted, setting the scene for a possible recession.

"If Americans aren't working, they are not spending and that's bad news for the American economy," said one analyst.

"It sure feels like a recession even if it's not quite the technical definition economists talk about," said Stu Hoffman Chief Economist, PNC Financial Svcs. Group.

The one bright spot in August's numbers?

Rising wages isn't enough to make much of a difference.

Even the old retail standby - back-to- school sales - weren't enough to make people spend their dollars.

"Everyone except Walmart saw sales drop month over month," stated Dan Arnall, ABC News Business Analyst.

With recession looming and rising unemployment, the weak economy is likely to remain voter's top priority in the presidential election.

"I don't think it'll get any better, I'm sorry to say." "We'll definitely see both McCain and Obama addressing their own policies over the coming weeks," said Stu Hoffman, Chief Economist PNC Financial Svcs. Group.

As for gas prices, the price per barrel of crude fell below $106.00 Friday, its lowest trading level since early April.

Analysts say it may be due to Americans' cutting back on driving.