Jobs Data Provide Hope --- Market Rallies on Private-Sector Gains, Even as Unemployment Rate Ticks Up
The U.S. economy lost jobs for the third month in a row in August, but modest hiring by the private sector eased concerns the economy might be tumbling back into recession.</br></br>Private-sector employers added 67,000 jobs on a seasonally adjusted basis, the Labor Department said Friday. Overall, nonfarm payrolls fell by 54,000, as the U.S. shed 114,000 temporary Census workers and state governments also reduced employment.</br></br>The jobs report was consistent with other recent economic reports, including a strong factory report earlier this week, that show the economy continues to recover, though at a painfully slow rate.</br></br>The unemployment rate ticked up to 9.6% from 9.5% in July, not because of layoffs but because more people entered the work force. Some 14.9 million people remain jobless, and the unemployment figure marked the 16th straight month above 9%, the longest stretch in a quarter-century.</br></br>That promised to keep the pressure on Democrats in Congress as midterm elections approach, with Republicans pressing the case that the party that dominates both Congress and the White House isn't getting Americans back to work.