U.S. Unemployment Rate Rises to 9.7%

The latest report by the Labor Department indicates that the United States unemployment rate in August rose to 9.7%. That is the highest the unemployment rate has been since 1983 when it was higher than 10%. While the percentage increase appears negative on paper, there were some positive signs in the Labor Department report.

Experts estimated that 225,000 jobs would be lost in August. As it turns out, there were only 216,000 job losses. The slowing down of the job losses is a positive sign in terms of the economy stabilizing in the U.S. In fact, this quarter is expected to technically be the end of the recession.

Some of the job gains and the economic upswing can be connected with government programs such as “Cash for Clunkers” and the program that gives an $8,000 tax credit for those people who are buying a house for the first time. Some economists wonder if these programs are artifically aiding the economy and whether the United States might suffer another downturn once those programs end.

As it is, investors were apparently happy with the job news as many stocks went up after Friday’s unemployment rate news.

Jobs are getting more difficult to find (Image: Flickr)