Struggling US economy creates no jobs in August

The Labor Department said the unemployment rate remained unchanged at 9.1 per cent from July. It was the 28th month the jobless rate has been at 9.0 per cent and above, except for two. -- PHOTO: AFP

WASHINGTON (AFP) - The struggling US economy added no jobs in August after 10 months of gains, amid rising fears of recession and political turmoil over the government's debt and deficit, official data showed on Friday.

Employment in the private sector, which has been the main engine for job growth as revenue-strapped governments shed workers, 'changed little' in most major industries, the Labour Department said.

The total of 17,000 private-sector jobs added were offset by 17,000 shed by government.

The Labour Department said the unemployment rate remained unchanged at 9.1 per cent from July. It was the 28th month the jobless rate has been at 9.0 per cent and above, except for two.