4,000 jobs cuts in August: first drop in four years

In the month of August employers have cut 4,000 jobs; this is the first drop in four years with this in mind it is thought that it will put pressure on the Federal Reserve to cut interest rates. The surprise was many thought that hiring would keep rising in August instead of dropping, and the recent credit-market turmoil have not even had time to have an impact yet, also job cuts will be higher soon as many subprime mortgage companies will be laying off more workers.

However even though the 4,000 job cuts was not a great outlook, the unemployment rate stayed at the same rate as in July 4.6 percent. The job losses in August were mainly from the goods-producing sector which cut 46,000 jobs, with another 22,000 jobs being cut from Construction businesses. The increase of 60,000 jobs in the Service industries sector helped to offset most of those losses.

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