The unemployment rate rose from 9.4% in July, then to 9.7% in August, however, the economists have taken cheer from the slowing pace of job cuts. However, the US employers cut fewer jobs than had been expected. The Labor Department announced a total of 216000 job losses on the non-farm payroll measure, which is less than the the forecast figure of 225000.
The employment has fallen by 6.9m in the US ever since December 2007, weighing heavily on consumer spending and compounding the problems caused by the nation’s housing crash. According to the Labor Department, it is announced that the biggest job cuts were seen in construction, where employment declined by 65000, along with the trend ever since May.
Though the pace of job losses has slowed throughout manufacturing in recent months, manufacturing employment declined 63000. Financial activities shed 28000 jobs in August, which has continued to slow ever since the turn of 2009. Wholesale trade employment fell by 17000. Most other sectors remained broadly flat and employment in health care went on rising in August, going up by 28000.