WASHINGTON - Financially struggling US Postal Service (USPS) is considering to lay off thousands of jobs, a bad news for the already troubling US labor market, local media reported on Thursday.

The agency, which has 583,908 career employees, is reported to cut as many as 120,000 jobs to relieve from financial burden. It is facing a second year of losses totaling more than 8 billion dollars.

Over the last four years, USPS has cut 110,000 jobs and is currently engaged in trimming 7,500 administrative staff.

The agency's job reduction move will worsen the US unemployment situation, which is the number one challenge for the Obama administration.

The unemployment rate, currently at 9.1 percent, is not expected to fall sharply in the near future.

The world's largest economy has lost more than 8 millions jobs since the burst of the financial crisis in 2008. Currently, about 14 million Americans are out of work.

On Thursday, US President Barack Obama vowed to continue to focus on economic growth and job creation.