Jobless rate soars to 6.1%

Unemployment surges to 5-year high as employers cut workers for eighth straight month, bringing '08 job losses to 605,000.

NEW YORK (CNNMoney.com) -- The unemployment rate soared to a nearly five-year high in August, topping 6%, as employers trimmed jobs for the eighth straight month, according to the latest government reading Friday that came in weaker than forecasts.

The big surprise in the report was that the unemployment rate rose to 6.1%, the highest level since September 2003. That's up from the 5.7% rate in July and 4.7% a year ago. Economists surveyed by Briefing.com had forecast the rate would remain unchanged from the July reading.

There was a net loss of 84,000 jobs in August, according to the Labor Department, compared to a revised reading of a 60,000 job loss in July. Economists surveyed by Briefing.com had forecast a loss of 75,000 jobs.

With the August report, the U.S. economy has now lost 605,000 jobs so far this year.

Manufacturing lost 61,000 jobs, while construction employment fell by 8,000. But the job losses were widespread beyond those two troubled sectors.

Retailers trimmed 20,000 jobs despite the back-to-school shopping season that is second only to the holiday period for many stores. Business and professional services, a broad category that includes industries such as accountants, consultants and legal services, lost 53,000 workers. Leisure and hospitality cut 4,000 jobs.