The Friday's jobs report showed an improving trend. Employers cut jobs in August at the slowest pace in a year. The Labor Department said nonfarm payrolls shed 216,000 jobs in August, fewer than the 276,000 lost in July. Losses in retail and business services narrowed. The biggest gains came in health care. 
A jump in the unemployment rate to a 26-year high of 9.7% reinforced worries that a weak labor market. A revised data showed more job losses than previously reported in earlier months. The economy has shed 6.9 million jobs since the recession began in December 2007. Rising unemployment portends persistent weakness in consumer confidence, income and spending, while manufacturers start bouncing back and stocks revive. Most economists expect the rate to top 10% in coming months and stay over 9% through 2010.
A declining pace of job losses in August helped increase in stock Friday afternoon. Traders focused on a decline pace in payrolls instead of the unemployment rate's rise.
Charts: Courtesy of WSJ.com
1 comment:
This is relaxing news, low rate in jobs cut. At least we are not having more jobless people now; we are not in position to afford more job losses.
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