Jobless Rate at Highest Point Since 1997

The number of Americans out of work rose 0.4% in August to 4.9%, the highest level since September 1997, a government report said Friday.

Since employment levels drive so much economic activity, a slide in the job market can further weaken consumer confidence and spending patterns. It also shows that many businesses are still retrenching, which can further cut into freight shipments.

The Department of Labor’s monthly report found that 141,000 manufacturing jobs were lost during the month. Since last July, more than a million positions in this sector have been eliminated, according to Katharine Abraham, commissioner of the Bureau of Labor Statistics.

The jobless rate in the manufacturing sector by itself rose to 5.7%, up 2.2% from August 2000.

The trucking industry relies heavily on the manufacturing sector for business and when it suffers, the trucking industry does as well.

Additionally, the report outlined the loss of 26,000 retail jobs. Retailers are another important customer of the trucking industry.

Analysts had predicted that the unemployment rate would rise only 0.1% for the month, and pointed to the weak U.S economy as the main culprit, BridgeNews reported

The number of service jobs rose by 23,000, the Labor Department said, while the temporary workforce dropped by 2,000.

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