The unemployment rate in the US jumped more than expected, to 9.7 per cent last month, the highest since 1983, prompting fears that weak consumer spending will make for a slow economic recovery next year.
But while the percentage of those without jobs rose more than expected, the economy shed fewer jobs than economists had predicted, at a net total of 216,000 jobs, less than July's revised 276,000 and the fewest monthly losses in a year, according to the US labour department.
Economists had expected the unemployment rate to rise to 9.5 per cent from July's 9.4 per cent, and job reductions to total 225,000.
The so-called underemployment rate, which includes part-time workers who would prefer a full-time position and people who want work but have given up looking, reached a record 16.8 per cent.
The rise in the jobless rate was largely because the number of unemployed Americans jumped by nearly 500,000 to 14.9 million, while only 73,000 people joined the civilian labour force. Those figures are from a different survey than the report on total job cuts. The civilian labour force usually grows as a recession winds down and optimism about finding work increases. But as long as Americans remain anxious about their jobs, consumer spending is not expected to rise enough to power a rebound.
The figures increase concerns that the recovery forecast for the second half of this year will not prompt a turnaround in the US job market until next year. With the ranks of long-term unemployed nearing 5 million, workers are at risk of losing skills, making it even tougher for them to eventually find work.
"The economy is no longer detonating, but we are still losing jobs," said David Rosenberg, the chief economist at Gluskin Sheff and Associates in Toronto. "It's going to be a very tough environment for the consumer."
Rising joblessness underscores the judgment last week by Timothy Geithner, the US Treasury secretary, that it is too early to begin ending the unprecedented stimulus measures aimed at stabilising the economy.
"The labour market lags behind the rest of the economy, so we are first going to have to see positive GDP growth," said Christina Romer, the chairman of the White House council of economic advisers. While 9.7 per cent unemployment is a tragedy, Ms Romer said, the pace of job losses had slowed from 741,000 in January. She said the Obama administration's US$787 billion (Dh2.89 trillion) financial stimulus was working to boost growth, although she declined to comment on whether a second effort would be needed.
Revisions cut 49,000 from the payroll figures previously reported for July and June. The drop for July is now calculated at 276,000, up from the 247,000 previously reported.
The latest numbers brought total jobs lost since the recession began in December 2007 to 6.9 million, the biggest fall in any economic slump since the end of the Second World War. Analysts in a survey by Bloomberg predicted that the unemployment rate would reach 10 per cent by early next year and average 9.8 per cent over the year.
All major job categories recorded losses in August, with construction payrolls dropping by 65,000, factories cutting another 63,000 and retailers firing a net 10,000 people.
* with agencies
COMPANY PROFILE
Company name: Klipit
Started: 2022
Founders: Venkat Reddy, Mohammed Al Bulooki, Bilal Merchant, Asif Ahmed, Ovais Merchant
Based: Dubai, UAE
Industry: Digital receipts, finance, blockchain
Funding: $4 million
Investors: Privately/self-funded
COMPANY PROFILE
Name: SmartCrowd
Started: 2018
Founder: Siddiq Farid and Musfique Ahmed
Based: Dubai
Sector: FinTech / PropTech
Initial investment: $650,000
Current number of staff: 35
Investment stage: Series A
Investors: Various institutional investors and notable angel investors (500 MENA, Shurooq, Mada, Seedstar, Tricap)
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CHATGPT ENTERPRISE FEATURES
• Enterprise-grade security and privacy
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• Shareable chat templates that companies can use to collaborate and build common workflows
• Analytics dashboard for usage insights
• Free credits to use OpenAI APIs to extend OpenAI into a fully-custom solution for enterprises
EMIRATES'S REVISED A350 DEPLOYMENT SCHEDULE
Edinburgh: November 4 (unchanged)
Bahrain: November 15 (from September 15); second daily service from January 1
Kuwait: November 15 (from September 16)
Mumbai: January 1 (from October 27)
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Colombo: January 2 (from January 1)
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Lyon: March 1 (from December 1)
Bologna: March 1 (from December 1)
Source: Emirates
The specs
Engine: 2.0-litre turbocharged 4-cyl
Transmission: 8-speed auto
Power: 300bhp (GT) 330bhp (Modena)
Torque: 450Nm
Price: Dh299,000 (GT), Dh369,000 (Modena)
On sale: now
Confirmed bouts (more to be added)
Cory Sandhagen v Umar Nurmagomedov
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Michael Chiesa v Tony Ferguson
Deiveson Figueiredo v Marlon Vera
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Tickets for the August 3 Fight Night, held in partnership with the Department of Culture and Tourism Abu Dhabi, went on sale earlier this month, through www.etihadarena.ae and www.ticketmaster.ae.
TWISTERS
Director:+Lee+Isaac+Chung
Starring:+Glen+Powell,+Daisy+Edgar-Jones,+Anthony+Ramos
Rating:+2.5/5
About Okadoc
Date started: Okadoc, 2018
Founder/CEO: Fodhil Benturquia
Based: Dubai, UAE
Sector: Healthcare
Size: (employees/revenue) 40 staff; undisclosed revenues recording “double-digit” monthly growth
Funding stage: Series B fundraising round to conclude in February
Investors: Undisclosed
Racecard
5pm: Al Maha Stables – Maiden (PA) Dh80,000 (Turf) 1,600m
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6pm: Emirates Fillies Classic – Prestige (PA) Dh100,000 (T) 1,600m
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7pm: The President’s Cup – Group 1 (PA) Dh2,500,000 (T) 2,200m
7.30pm: The President’s Cup – Listed (TB) Dh380,000 (T) 1,400m
Company profile
Company name:+Dharma
Date started:+2018
Founders:+Charaf El Mansouri, Nisma Benani, Leah Howe
Based:+Abu Dhabi
Sector:+TravelTech
Funding stage:+Pre-series A
Investors:+Convivialite Ventures, BY Partners, Shorooq Partners, L& Ventures, Flat6Labs
The specs
Engine: Single front-axle electric motor
Power: 218hp
Torque: 330Nm
Transmission: Single-speed automatic
Max touring range: 402km (claimed)
Price: From Dh215,000 (estimate)
On sale: September