US jobless rate at 26-year high
US employers cut 216,000 jobs in August, pushing the unemployment
rate up to 9.7%, a 26-year high, official figures show.
The unemployment rate rose after dipping to 9.4% in July but the
Labour Department said the job loss figure was the smallest in a
year.Since the start of the recession in December 2007, the economy has
shed 6.9 million jobs, the department said.Jobs have been lost across
manufacturing and service industries.Total unemployment stands at 14.9
million.
Analysts had expected the unemployment rate to rise to 9.5% and job
reductions to total 225,000.Although there have been signs that the US
economy is now recovering from the worst recession in 70 years,
unemployment has remained high and could dampen any economic
rebound.However, Nigel Gault, chief US economist at IHS Global Insight,
said that the rise in the jobless rate was not too discouraging."The
decline last month was too good to be true, really. It's too early for
the unemployment rate to be coming down, of course we're still losing
jobs," he said.
"What I would take encouragement from is the fact is the trend in the
rate of decline in jobs is still improving, that private sector jobs
were down 198,000, that's 50,000 better than the previous month and it's
almost 200,000 better than the month before that."Most cuts were seen in
the construction industry, with 65,000 jobs lost in the month.Health
care and educational services was the only bright spot, adding 52,000
jobs.
-BBC
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