Despite a generation of 67,000 jobs by private employers, United Sates’ unemployment rate edged up to in August as not enough jobs were created to absorb the soaring number of unemployed people.
The economy suffered a loss of 54,000 jobs in August as 114,000 temporary census positions were ended. The condition got deteriorated due to state and local government layoffs.
National unemployment climbed from 9.5 per cent in July to 9.6 per cent in August as more job seekers applied for work.
According to the dean of the business school at St. Thomas University,
Tony Villamil, the economy is still in a depressed state.
Commenting on the topic, “Yes, there has been some modest uptick in jobs, but the economy is treading water.”
Temporary employment climbed by around 17,000 following a slight loss in the month of July, which indicates that employers are searching ways to enhance their workforces but are unwilling to do so permanently. Temporary hiring averaged 45,000 a month from October to May, has been slowing since then.
Meanwhile, the Institute for Supply Management claimed on Friday that its index of activity at service businesses slipped from 54.3 per cent to 51.5 in August.
Revised figures show that California’s unemployment rate was much higher in July, at 12.3 per cent, while Santa Clara County and San Mateo County saw unemployment rates at 11.4 per cent and 9.4 per cent, respectively. The state is expected to release August figures on September 17.