Employers cut more jobs from their payrolls in September and the unemployment rate hit another 26-year high, as the long-battered U.S. labor market took an unexpected turn for the worse, according to a government report Friday.
The Labor Department said there was a net loss of 263,000 jobs in the month, up from a revised loss of 201,000 jobs in August. Economists surveyed by Briefing.com had forecast losses would fall to 175,000 jobs.
This is only the second time this year that job losses rose from the previous month, as the labor market had shown slow but relatively steady improvement since a loss of 741,000 jobs in January.
September marked the 21st consecutive month that the number of workers on payrolls has shrunk, a period during which 7.2 million jobs have been lost.
Even though many economists, including those at the Federal Reserve, have said there are signs that the economy is growing once again, Friday’s jobs report shows that job losses could continue well into the recovery, limiting the strength of any economic turnaround.
U.S. stock futures, which predict the direction of markets in early trading, fell sharply following the release of the jobs report.
The unemployment rate rose to 9.8% in September from 9.7% in August. That was in line with economists’ forecasts, but the unemployment rate is now the highest since June 1983.
The average work week also fell to a record low of 33 hours, down from 33.1 hours in August. In addition, the number of workers who want full-time jobs who are only able to find part-time work rose to a record 9.2 million. Hard money training
Tags: economists, employers, jobs, unemployment
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