Unemployment rises to 9.7%, jobs -216k
* The economy shed 216,000 jobs last month. That was slightly below the -230,000 estimate of economists surveyed by Bloomberg. However, July's number was revised upward to -276,000 from -247,000. June's job loss figure was also revised up by 20,000.
* The unemployment rate jumped to 9.7% from 9.4% a month earlier. That handily topped estimates for a reading of 9.5%.
* Average hourly earnings rose 0.3%, a bigger gain than the 0.1% rise that was expecting. Average weekly hours held steady at 33.1.
* Among sectors, construction lost 65,000, down from -73,000 a month prior. Manufacturing lost 63,000, up from -43,000 in July. Retail and transport jobs shrunk by 28,000, down from -85,000. The only sector to show job growth among the major categories was education/health at +52,000, up from +21,000 a month earlier.
Market reaction, as usual, is volatile. Stock futures initially tanked, and bond prices rose off their lows. Now, bond prices are dropping and stock futures are jumping. You gotta love employment report Friday!