Job losses ebb, but unemployment up

by admin on Sep.04, 2009, under Banking Group, Banking Industry, Global Economic Crisis, World Economy

Unemployment jumps to a 26-year high of 9.7%, even as employers cut the smallest number of jobs since August 2008.

Employers trimmed fewer jobs in August than they did the prior month, but the unemployment rate jumped to a 26-year high, the government reported Friday.

There was a net loss of 216,000 jobs in the month, according to the Labor Department. That was the fewest jobs lost since August 2008 and lower than a revised loss of 276,000 jobs in July. Economists surveyed by Briefing.com predicted a loss of 230,000 jobs in August.

But even with the lower level of losses in August, 6.9 million jobs have been cut from payrolls since the start of 2008.

The unemployment rate, which in July fell for the first time in 15 months, turned higher again, jumping to 9.7% from 9.4% in July. This is the highest the unemployment rate has been since June 1983. Economists forecast that the jobless rate hit 9.5% in August. Austin Hard Money Lender