US Economy Witnessed 54,000 Job Loss in August

The US economy lost 54,000 jobs in August which is 3rd month in a row that jobs have been lost. That’s why the unemployment rate jumped to 9.6% from 9.5% in July. However, the good news is that private sector had created a better-than-expected 67,000 jobs. President barrack Obama welcomed the latest report of unemployment. He will announce a few measures next week that is expected to create private jobs. Most of the job losses occurred in the public sector because the government cut 114,000 temporary census workers, according to the Labour Department. Private businesses added 67,000 jobs to their payrolls.

Employment in the healthcare sector rose by 28,000, while the construction and mining sectors witnessed significant gains. However, the job losses in manufacturing employment dropped by 27,000. Recent economic data raised the doubt of economic recovery in North America. The second quarter growth is revised down to 1.6% which is much less than many leading European economies. The housing market also dropped considerably in the last two months. Nevertheless, the economists said that the recent data eliminates the fear that US economy is heading back toward recession.

“I don’t regret the notion that we are moving forward … because of the steps that we’ve taken,” Obama told reporters. “The key point I’m making right now is that the economy is moving in a positive direction. … We just have to speed it up.”