US jobless rate at 26-year high

US employers cut 216,000 jobs in August, pushing the unemployment rate up to 9.7%, a 26-year high, official figures show, according to a report on www.bbc.co.uk.



The unemployment rate rose after dipping to 9.4% in July but the Labor Department said the job loss figure was the smallest in a year.



Since the start of the recession in December 2007, the economy has shed 6.9 million jobs, the department said.



Jobs have been lost across manufacturing and service industries.



Total unemployment stands at $14.9 million.



Although there have been signs that the US economy is now recovering from the worst recession in 70 years, unemployment has remained high and could dampen any economic rebound.



However, Nigel Gault, chief US economist at IHS Global Insight, said that the rise in the jobless rate was not too discouraging.



\"What I would take encouragement from is the fact is the trend in the rate of decline in jobs is still improving, that private sector jobs were down 198,000, that\'s 50,000 better than the previous month and it\'s almost 200,000 better than the month before that,\" Gault said.



Most cuts were seen in the construction industry, with 65,000 jobs lost in the month.



Health care and educational services was the only bright spot, adding 52,000 jobs.