Unemployment Rate Hits 9.7% in Highest Level Since 1983

The U.S. unemployment rate rose to 9.7% in August, the highest rate since 1983, the Labor Department said Friday.

Employers cut 216,000 jobs, following the 276,000 cuts in July that left the rate at 9.4%, Labor said.

The jobless rate was higher than the 9.5% level forecast by economists, while payroll cuts exceeded the 230,000 forecast, Bloomberg reported.

Factory payrolls lost 36,000 jobs following 43,000 in July. Auto manufacturing and parts industries lost 15,000 jobs.

Service industries lost 80,000 jobs following a revised reduction of 154,000 a month earlier, Labor said.