Private employers hired more workers over the past three months than first thought, a glimmer of hope for the weak economy ahead of the Labor Day weekend. But the unemployment rate rose because not enough jobs were created to absorb the growing number of people looking for work.
Companies added a net total of 67,000 new jobs last month and both July and June's private-sector job figures were upwardly revised, the Labor Department said Friday.
Stocks surged after the report's release. The Dow Jones industrial average rose more than 100 points in afternoon trading and broader indexes were all up.
While the report hardly suggests the economy is out of danger, it's a reassuring sign after weeks of troubling data and comes after some encouraging economic figures in the past week.
Scott Brown, an economist at Raymond James, said he sees no sign of the country slipping back into recession.
"You're still seeing broad-based job gains. It's not strong, but it's positive," Brown said.
Overall, the economy lost 54,000 jobs as 114,000 temporary census positions came to an end. For the first time this year, the manufacturing sector lost jobs — down a net total of 27,000 for the month. The auto industry accounted for 22,000 of those lost jobs, the department said. But those losses were largely due to a shift in the timing of the industry's summer shutdowns.
State and local governments shed 10,000 positions and have had net jobs losses in every month but one this year.
President Barack Obama said the report shows the economy is moving in the right direction. But he said further action is needed to help bring back the 8.4 million jobs lost during the downturn.
"It reflects the steps we've already taken to break the back of this recession. But it's not nearly good enough," Obama said. He called on Congress to extend the Bush administration's tax cuts for middle-class Americans and to pass a bill that would increase lending and reduce taxes for small businesses.
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