U.S. economy loses 84,000 jobs in August
There was more bad news for the U.S. economy on Friday as employers cut their payrolls by 84,000 jobs last month.
The job losses pushed the U.S. unemployment rate up from July's 5.7 per cent to a five-year high of 6.1 per cent, matching Canada's jobless rate for the month.
Economists had been forecasting U.S. job losses in the range of 75,000 to 100,000 for August.
Last month's losses come on top of 100,000 jobs lost in June, and a fall of 60,000 jobs in July, according to the U.S. Labour Department.
"Businesses have decided to hunker down," said Joel Naroff, president of Naroff Economic Advisors. "They are not hiring, and they are paring workers where they can. That is making things pretty tough out there."
The news comes as the U.S. economy struggles with the fallout from a funk in the housing market and a struggle in the credit and financial markets.
"With this report, there appears to be no end in sight to the distresses in the U.S. labour market, and little to suggest that the much longed-for improvement in labour market conditions is any closer," said Millan Mulraine, economics strategist at TD Securities.
"Moreover, it also suggests that the headwinds facing U.S. consumers are gaining strength," said Mulraine.
with files from Associated Press
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