WASHINGTON (MarketWatch) — The U.S. unemployment rate jumped to a 26-year high of 9.7% in August as nonfarm payrolls fell by 216,000, the 20th consecutive monthly decline, the Labor Department estimated Friday.
U.S. payrolls have dropped by 6.9 million to a total of 131.2 million since the recession began in December 2007, the government data showed. Unemployment has increased by 7.4 million during the recession to stand at 14.9 million.
“Joblessness continues to mount, which will only make it harder for households to repay debt and build savings, thereby impeding a consumer-led recovery,” wrote Sal Guatieri, senior economist for BMO Capital Markets.
The 216,000 decline in payrolls was close to market expectations of a 233,000 drop, but the unemployment rate rose higher than the 9.5% level expected. The unemployment rate was 9.4% in July.
It was the smallest decline in payrolls since August 2008.
Payrolls declined an upwardly revised 276,000 in July. In June and July, payroll losses were revised up by 49,000. Read the full government report.
Read the rest on Market Watch.
Related articles: