Unemployment rate edges up on job cuts; spending down

Friday, Nov. 1, 2002 | 10:02 a.m.

WASHINGTON -- The nation's unemployment rate edged back up to 5.7 percent in October, indicating the employment market remains shaky, and consumer spending in the previous month fell by the largest margin in 10 months.

October's 5.7 percent jobless rate was up slightly from 5.6 percent in September, and businesses cut 5,000 jobs. It was the second month in a row of payroll cuts, the Labor Department reported today. Cuts came largely in manufacturing, construction and temporary employment services. Those job losses were largely offset by gains in the service sector.

The good news is the country's employment situation appears to be moderating, with the jobless rate nudging up and down slightly in recent months instead of surging in one direction. But economists are concerned about the lack of new jobs being created.

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