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Indiana is suffering the same jobs shock as the rest of the nation

U.S. unemployment shoots up

U.S. unemployment shoots up
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The nation's unemployment rate hurtled upward to 6.1 percent in August from 5.7 percent in July, as almost every sector of the U.S. economy lost jobs.

Employers reported shedding a total of 84,000 jobs during the month, with 61,000 jobs lost in manufacturing alone, according to the U.S. Bureau of Labor Statistics.

Altogether, employers have shed 605,000 jobs so far this year, according to the Bureau's Employment Situation report issued Friday.

Indiana is suffering the same jobs shock as the rest of the nation, with the seasonally adjusted state unemployment rate spiking to 6.3 percent in July, according to Stats Indiana.

People streaming in an out of the WorkOne employment center in Hammond on Friday didn't need the U.S. Bureau of Labor Statistics to tell them unemployment is surging.

"Nowadays, you have to take a job anywhere you can get it," said Angel James, an employee at ZF Lemforder, in Chicago.

She fears her plant, which supplies auto parts to the nearby Ford Motor Co. plant, soon will be eliminating a shift because of layoffs at Ford. James said she is looking for a job now in case she gets laid off.

Auto vehicle and auto parts manufacturers shed 39,000 jobs in August, according to Friday's employment report. They have lost 128,000 jobs since the beginning of the year.

Ignacio Cotto, of Hammond, said he had been working odd jobs ever since he was laid off from an industrial services company one year ago.

"I'll take anything I can find," he said. "Gas is so expensive. Food is expensive. Everything is expensive."

There are some jobs available. Dronte Deloney, of Gary, was patiently waiting outside the WorkOne on the sidewalk before going back in to take a test for an opening at steelmaker ArcelorMittal.

"The idea is to get something secure," Deloney said.

Friday's unemployment report left investors feeling very insecure. The Dow Jones Industrial Average lost more than 100 points in morning trading before clawing its way back to a small gain in afternoon trading.

"With the unemployment rate over 6 percent, it is a clear warning sign that this economy is continuing to soften faster than we thought. It is a real concern," said Joel Naroff, president of Naroff Economic Advisors.

"Businesses have decided to hunker down. They are not hiring, and they are paring workers where they can. That is making things pretty tough out there," Naroff added.

Job losses nationally took place in a broad range of industries, according to Friday's employment report. The banking industry continues to get hammered from the U.S. home foreclosure crisis, with the professional and business services sector losing 53,000 jobs in August.

Education and health services provided the lone bright spot, gaining 55,000 jobs.

The Associated Press contributed to this story.

Copyright 2012 nwitimes.com. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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