NFIB

Unemployment Rate Drops to Four-Year Low
09/02/2005

U.S. employers created 169,000 jobs in August, bringing the unemployment rate to 4.9 percent, the lowest since August 2001, the Labor Department reported Friday. Employment numbers from June and July were also revised, reflecting larger gains than originally reported.

The majority of jobs in August were added in industries like construction, professional and business services, health care, education and financial services. Manufacturers cut 14,000 jobs last month.

Despite the drop in manufacturing jobs, a separate report released this week shows the manufacturing sector faring well. The Institute for Supply Management's monthly report on manufacturing activity indicates that the manufacturing sector is expanding. The August index was 53.6. Index numbers above 50 indicate industry growth and numbers above 42.7 indicate overall economic growth.