US Jobless Rate at 5-Year High of 6.1%

The nation’s unemployment rate hit a five-year high of 6.1 percent in August as employers cut 84,000 jobs, dramatic proof of the mounting damage a deeply troubled economy is inflicting on workers and businesses alike.

The Labor Department’s report, released Friday, showed the increasing toll the housing, credit, and financial crises are taking on the economy.

The jobless rate jumped to 6.1 percent in August, from 5.7 percent in July. And, employers slashed payrolls for the eighth month in a row. Job losses in June and July turned out to be much deeper. The economy lost 100,000 jobs in June and 60,000 in July, according to revised figures. Previously, the government reported job losses at 51,000 in each of those months.

Wachovia Corp., Ford Motor Co., Tyson Foods Inc., and Alcoa Inc. were among the companies announcing job cuts in August. GMAC Financial Services this week said it would lay off 5,000 workers.

Job losses in August were widespread:

• Factories - 61,000
• Construction - 8,000
• Retailers - 20,000
• Professional and business services - 53,000
• Leisure and hospitality - 4,000

Those losses swamped employment gains in the government, education, and health.

Job losses at all private employers — not including government — came to 101,000 in August.

The government said workers age 25 and older accounted for all the increase in unemployment in August.

Average hourly earning rose to $18.14 in August, a 0.4 percent increase from July. Economists were forecasting a 0.3 percent gain. Over the past year, wages have grown 3.6 percent, but paychecks aren’t stretching as far because of high food and energy prices.