Unemployment Rate Rises to 9.6% in August

(AP)  Private employers hired more workers over the past three months than first thought, lifting hopes for the weak economy ahead of the Labor Day weekend. But the unemployment rate rose in August for the first time in four months as more people entered the market looking for work.

Companies added a net total of 67,000 new jobs last month and both July and June's private-sector job figures were upwardly revised, the Labor Department said Friday.

Stocks surged after the report's release, but then lost some of their gains in early morning trading. The Dow Jones industrial average rose 52 points and broader indexes were all up.

While the report hardly suggests the economy is out of danger, it's a reassuring sign after weeks of troubling data and comes after some encouraging economic figures in the past week.

Scott Brown, an economist at Raymond James, said he sees no sign of the country slipping back into recession.

"You're still seeing broad-based job gains. It's not strong, but it's positive," Brown said.

Overall, the economy lost 54,000 jobs as 114,000 temporary census positions came to an end. For the first time this year, the manufacturing sector lost jobs down a net total of 27,000 for the month. The auto industry accounted for 22,000 of those lost jobs, the department said. But those losses were largely due to a shift in the timing of the industry's summer layoffs.

State and local governments shed 10,000 positions and have had net jobs losses in every month but one this year.

Temporary employment rose by nearly 17,000, after a slight loss in July. That indicates employers are looking to boost their work forces, but are reluctant to do so permanently. Temporary hiring averaged 45,000 per month from October to May, but has since slowed.

The jobless rate rose to 9.6 percent from 9.5 percent in July. More than a half-million Americans resumed their job searches in August, which drove up the jobless rate. When the unemployed stop looking for work, they are no longer counted in the jobless rate. It's the first time the labor force has grown since April.

Both June and July's figures were revised to show the private sector created more jobs in both months. The July figures were revised upward to 107,000 from 71,000. June was revised upward to 61,000 from 31,000. The revisions reflected smaller losses in construction, temporary help services and non-census government jobs.

Still, hiring has now been weak for four straight months. That deprives consumers of cash and reduces their ability to spend. Analysts expect economic growth to be tepid for the rest of this year and the jobless rate could keep rising to 10 percent or more in the coming months.

Average hourly earnings increased modestly and by more than economists expected, rising to $22.66 from $22.60.

The economy lost nearly 8.4 million jobs in 2008 and 2009. This year, private employers have added back 763,000 jobs. But the unemployment rate has barely moved from the 9.7 percent rate in January.

Including those who have given up looking for work and those who are working part time but would prefer full-time work, the so-called "underemployment" rate rose to 16.7 percent from 16.5 percent.

A jobless rate nearing 10 percent will ratchet up pressure on the Obama administration, Congress and the Federal Reserve to do more to jump start the economy. Tax cuts enacted in 2001 and 2003 are set to expire by the end of this year and many rank-and-file Democrats in Congress are joining Republicans in calling for all the cuts to be extended. President Barack Obama wants to let some tax cuts on upper income earners end.

Fed Chairman Ben Bernanke, meanwhile, said last week the central bank will take more steps to stimulate the economy if necessary. But he also said the foundations have been laid for economic growth to accelerate next year.

[wyodutch]

Used to be, Americans worked in factories that supplied the world with the highest quality goods.
.
Today, the factory buildings are shuttered and abandoned. Greed has replaced pride as the corporate fat cats sell out their fellow citizens for slave labor in red china.
.
It's hard to have an economic recovery based upon Americans selling tacos and internet access to each other.
.
Hard times are a'coming and you best stockpile your beans, bandaids, bullets and bullion before the storm hits... cause those who think the government will take care of them are in for a rude awakening.

[pragmatist1]

....thank God for food pantries....

[wyodutch]

Used to be, Americans worked in factories that supplied the world with the highest quality goods.
.
Today, the factory buildings are shuttered and abandoned. Greed has replaced pride as the corporate fat cats sell out their fellow citizens for slave labor in red china.
.
It's hard to have an economic recovery based upon Americans selling tacos and internet access to each other.
.
Hard times are a'coming and you best stockpile your beans, bandaids, bullets and bullion before the storm hits... cause those who think the government will take care of them are in for a rude awakening.

[sing-with-rapture]

You guys Republicans and Democrats love your political parties more than you love your country and its people.

Real American tragedy,tragedy.

None of you have a clue of your government,financial markets,and the real thugs behind it,profiting from American citizens miseries..

I hope you clueless moron can sleep well at night,thinking that 40 million people went hungry,millions lost their jobs,and their homes.

You retards, neither Bush or Obama is responsible for job losses,its the damn Federal Reserve and its politically incorporated policies with the financial markets.

When the Former Head of the CFTC" Madam Brooksely Born say that,and tells you who is responsible for the job loses ,homes,and retirement saving plans,case close,and do something about the culprits.

Rather then posting useless daily caropla for the garbage collector like yourself.

In America president does not have much control over the Federal Reserves questionable activities,that Ron Paul has been trying to Audit,and has been facing very strong Federal Reserves lobbying from Republicans and Democrats alike...The ones who have sold your Children's futures,by being in bed with the Fed.

Go learn about your country and help the right people to get you out of this mess.

Sad state of affairs in America friends.

[sing-with-rapture]

by jwilwade September 3, 2010 9:39 AM EDT
hey sing-with-rapture: Your first mistake was referencing the PBS. They have never been right about anything and are incredibly liberal biased and would say anything to protect their GOD Obama. Go read the history of the meltdown it is easy to find it was cause mostly by a chain reaction caused by the collapse of Fannie Mae and Freddie Mack. The ones who cause them to collapse are Obama, Franks,Dodd and many other demos that for years blocked the regulation of Fannie Mae and Freddie Mack that both BUSH and MCCAIN warned us that failure to do so would ruin the economy. Well it did when they went bust we bailed them out and the banks that were forced to give loans by the DEMOS to people that could not repay them went bust we rescued them, now that was on G.W. Bush but really he saved America again because if we had not spent the 25 billion shoring up the banks then the whole financial system would have collapsed and at least we got that money back. Then the the insurance and then wall street because the value of the mortgages were lies and corrupt dealers on wall street were trading in derivatives that meant nothing and had no value so what do we do we rescue them as well. Then Obama spends 878 Billion nearly a trillion on a stimulus that has done nothing, 1 trillion on health care that raises everyone's cost and does not even go into effect until after he leaves office and another 1 trillion on increased GOV programs and hiring more GOV workers that the tax payers have to pay for.All of this 100 % of it was caused by and happened after the Demos took power of congress in 2007. If they had listened to Bush and McCain none of this would have happened.
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I have told you before that you are not an America,you are a Partisan hoodlum ,who is bent on destroying America..

PBS" and Brooksely Born has more integrity than asinine like you democrats and Republicans put together.

Further I am in the business,PBS" just confirmed it 2 years later. I was posting all these facts when actually things were happening in 2008.

Clueless idiot you having the nerve to suggest that I am wrong over your partisan lies,a great true Patriot Brooksely Born is wrong,when Green Span and rest of the swindling thugs said that she was right.

About Fannie and Freddy, you just have learned their names,and know squat about what really happened moron.If the oil prices were not pushed up to 150 dollars a barrel,in order to collapse the housing and the financial markets Freddy and Fannie would have been just fine clueless.Read what Nouriel Rubini has to say on it,before your atom size brain understand these issues.

Shame on you Partisan none American hoodlum.

[starving1968-3]

by jwilwade September 3, 2010 12:24 PM EDT

Clinton was so mired in scandal he was willing to do what ever the GOP said so they would not Impeach him and then they did anyway.






Your whole post is nothing but ignorance of history, and rambling nonsense based on what you THINK happened, as opposed to what ACTUALLY happened - but this last line is the most absurd of all.

The ENTIRE Clinton presidency was NOTHING but a republican witch hunt, and NOTHING that Clinton did was satisfactory to the republicans - even his attempt to kill Bin Laden was met with ridicule and scorn!!!

[ky1946]

As a 'boomer', I for one am taking what I have earned by working over 40 years and paying taxes and SS and 401 contribution ect ect ect.
I will be only one of millions. By us leaving the market, there should be millions of new job openings. I am lucky, my stepson and three blood sons are all employed and have been since they were teens.
I would like to see how many begin looking for work after the unemployment 99 weeks expire. I know of several that have just stopped looking. I suspect this new stat is exactly that. Benefits have expired, I have to start looking again.

[Smokey75]

by USA_is_back September 3, 2010 2:56 PM EDT
by Smokey75 September 3, 2010 2:53 PM EDT
Please post some proof that the GOP is against that.

Again you kept whining about outsourcing but please tell us who signed NAFTA into law which caused most of the ousourcing.
================
It was Clinton - common knowledge, with a GOP Congress. A big mistake


You made it to easy for me to prove you are the liar not me. Did you forget this post I know liberals hate to be confronted with facts and now that you have you will resort to name calling but try to refrain it isn?t very dignified of you.

[Smokey75]

UAS_IS_BAck
Why are allowed to make profits you should be giving those profits to hard working employees who earn those profits no your lazy but who sits home every day and collects a pay check.

I assume when you actually ran the business you paid your employees the exact same amount you made right. You took nothing extra from the company, because if you did then according to the liberal mentality you are greedy!

[Smokey75]

UAS_IS_BAck
Why are allowed to make profits you should be giving those profits to hard working employees who earn those profits no your lazy but who sits home every day and collects a pay check.

I assume when you actually ran the business you paid your employees the exact same amount you made right. You took nothing extra from the company, because if you did then according to the liberal mentality you are greedy!