Job losses continue at a moderated pace in August.  The Bureau of Labor Statistics (BLS) reported that total nonfarm payrolls in August declined by 216,000 jobs, following revised losses of 276,000 and 463,000 in July and June, respectively.   Monthly job losses over the past four months averaged 315,000, roughly half of the average monthly decline of the six months between November 2008 and April 2009.  Since the start of the recession, total nonfarm payrolls have declined by 6.9 million. Job losses were spread among major industries, including construction (-65,000), manufacturing (-63,000), financial activities (-28,000) and wholesale trade (-17,000) sectors.   Employment levels in retail trade, professional and business services, transportation and warehousing, and leisure and hospitality were little changed in August.  In total, private payrolls shrank by 198,000 over the month, while federal, state and local government payrolls shed an additional 18,000 jobs.

Unemployment rate climbs to 9.7 percent.  Despite moderating job losses, the household employment survey showed that the civilian unemployment rate jumped three-tenths of a percentage point in August to 9.7 percent, a strong indication that employers remain reluctant to hire. Over 14.9 million people were officially counted as unemployed in August, 466,000 more than in July and 7.4 million more than at the start of the recession in December 2007.  More than half  (55.4 percent) of the monthly increase was due to workers who lost their jobs involuntarily, while one-quarter (25.3 percent) was due to workers who entered the labor market for the first time but had yet to find work.  Two-thirds of the total unemployed (65.3 percent) were workers who lost their job or who completed temporary jobs. In contrast, at the start of the recession, individuals who were unemployed because they had involuntarily lost a job or completed temporary work comprised one-half (50.0 percent) of the unemployed. (See Chart)  The broadest measure of unemployment (or underemployment), which includes the officially unemployed, marginally attached workers and workers who are working part-time for economic reasons, jumped this month from 16.3 to 16.8 percent.  The ratio of part-time to full-time workers has risen substantially during the current recession, indicating that workers who wish to work full-time have only found part-time work during the recession.  Between December 2007 and August 2009, part-time employment as a share of total employment rose from 16.9 percent to 19.8 percent of the total employed.

Cash for Clunkers spurred car sales in August.  While 2009 year-to-date sales for both domestic and imported cars and trucks remains low relative to the same time period in 2008, the daily sales rate (DSR) for domestic cars increased 18.5 percent from August 2008 to August 2009 and the DSR for imported cars increased 19.1 percent.  While the DSR for domestic light trucks declined over the year, the DSR for imported trucks increased 18.5 percent in August.  The increased sales rate for imported trucks appears to be due to increases in the popularity of cross-over trucks, which are generally built on a car frame.  The increases in car sales and imported truck sales in August are not likely to be repeated in September since the program ended on August 24, but may boost third quarter GDP through increased consumer spending on durable goods.