Unemployment Reaches Five Year Highby Tim Manni
The Labor Department reported this morning that the unemployment rate rose to 6.1% in August, from 5.7% in July. Nonfarm payrolls decreased by 84,000 last month, as continued troubles in the financial and manufacturing sectors have led to heavy losses in the employment market. The 84,000 cuts in August follow losses of 60,000 and 100,000 in July and June.
Glimmers of good news saw no job cuts in the government and education/healthcare sectors. Hourly earnings rose a seven cents in August. On a year-over-year basis, earnings increased 3.6%. Despite the year-over-year increase, wages have not been able to keep up with inflation.