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Unemployment rate higher, despite 244,000 new jobs

by Jorge Hernandez on May 6, 2011

The U.S. Department of Labor Statistics released figures for April indicating that unemployment had risen from 8.8 percent in March to 9 percent in April. However, 244,000 new jobs were added.

The number of new jobs exceeded many analysts' expectations, according to the Los Angeles Times, which cited a forecast of 185,000 jobs as the number of expected new hires.

However, the LA Times reports that 24,000 jobs were cut from the government sector, "the only major employment group that saw a meaningful decline …mostly because of cuts at state and public agencies."

More than 8.5 million people lost their job as a result of the economic collapse in 2008 and 2009, reports the news source. About 13.75 million people are still unemployed as of April.

Since December 2009, some of the new jobs appear in the sectors of manufacturing, machinery, computer and electronic goods, as well as mining, according to Bloomberg.

Mining saw an increase of 11,000 jobs, while manufacturing added 250,000 new jobs. Computer and electronic products saw an increase of 4,000 jobs.

Within the last month, the business services industry saw an increase of 51,000 jobs, reported the LA Times. Consulting, architecture as well as the computer sector all posted increases.

Many jobs in the financial sector were lost at the beginning of the recession, as investment banks were hit hard by the subprime mortgage crisis. Recently, the Fed began a lawsuit against Deutsche Bank in regards to the bank's actions involving poor mortgage loans. Other banks are also at risk of being sued by the government, including financial giant Goldman Sachs.

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