Recently Media report suggested that America had finally overcome the recession as Stock market showed green signs. But here is the shock news.
A wave of government layoffs in September outpaced weak hiring in the private sector, the unemployment rate held at 9.6 per cent last month, the Labor Department said Friday.
The jobless rate has now topped 9.5 per cent for 14 straight months, the longest stretch since the 1930s.
The private sector added 64,000 positions, the weakest showing since June.
A net total of 159,000 government jobs were lost in September. Local governments cut 76,000 jobs last month, most of them teachers. That's the largest cut by local governments in 28 years. About 77,000 temporary federal census jobs ended and state governments shed 7,000 jobs.
Nearly 14.8 million people were unemployed last month. That's almost 100,000 fewer than in August.
Manufacturers cut 6,000 jobs, the second straight month of losses. The sector drove job growth earlier this year, adding 134,000 positions in the first five months of 2010, but factory employment has been flat since then.
Construction firms cut another 21,000 jobs, hampered by weakness in commercial real estate development. Information services lost 5,000 positions.
Other sectors showed job gains: Health care added 32,000 jobs, the leisure and hospitality sector added 38,000, and retailers added 5,700. Temporary help services hired nearly 17,000 workers.
Since the recession ended in June 2009, the economy has grown 3 per cent, according to economists at Deutsche Bank. That's less than half the average 6.5 per cent pace in postwar recoveries.