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 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 14.9 million. 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.
Payroll losses have moderated in most industries in the past two months. Payrolls declined an upwardly revised 276,000 in July. In June and July, payroll losses were revised up by 49,000.
Details of the report were generally weak. Payrolls fell in most sectors of the economy except for health care. Total hours worked in the economy fell by 0.3%. Long-term unemployment worsened, and the number of people working part-time who want full-time work rose by 278,000 to 9.1 million.
An alternative measure of unemployment that includes discouraged workers and those forced to work part-time rose to 16.8% from 16.3%, the highest on record dating back to 1995.
Average hourly earnings rose 6 cents, or 0.3%, to $18.65 an hour. In the past year, average hourly earnings are up 2.6%.
