Payrolls slashed, but unemployment rate falls

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Friday, Sept. 5, 2003 | 9:22 a.m.

WASHINGTON -- The civilian unemployment rate improved marginally last month -- slipping to 6.1 percent -- even as companies slashed payrolls by 93,000. Today's report raised new concerns that the fragile economic recovery could falter.

August was the seventh consecutive month of cuts in payrolls, a survey released by the Labor Department showed, indicating continuing weakness in the job market. Analysts had expected companies to add 12,000 new jobs.

At the same time, the overall seasonally adjusted unemployment rate fell from 6.2 percent to 6.1 percent of the labor force, as reflected by a survey of U.S. households.

The survey of businesses showed that job cuts were heavy again in manufacturing, a sector that has suffered the brunt of the economic downturn that began in March 2001.