Unemployment Rate Rises to 8.9% in April

The U.S. unemployment rate rose to 8.9% in April from 8.5% in March, but the pace of job cuts slowed, the Labor Department said Friday.

Payrolls fell by 539,000, following March’s 699,000 figure, Labor said. The jobless rate was the highest since September 1983.

Economists had forecast payrolls to drop to 600,000 following the 663,000 originally reported for March, while the unemployment rate matched forecasts, Bloomberg reported.

Factory payrolls fell by 149,000 following a 167,000 decline in March. The downturn included 29,000 jobs lost in auto manufacturing and related parts industries.

Service industries employment fell by 269,000 jobs, Labor said.