The U.S. unemployment rate rose to 9.7 percent in August, the highest since June 1983 and worse than economists had expected, the Labor Department reported Friday.

A man uses a computer to look for work at the California Employment Development Department in San Francisco, California September 4, 2009. U.S. employers cut 216,000 jobs in August, fewer than in previous months but the unemployment rate rose to a 26-year high of 9.7 percent.

Nonfarm payroll employment declined a net total of 216,000 jobs in August, less than July’s upwardly revised total of 276,000, and was the lowest in a year. Analysts expected the unemployment rate to rise to 9.5 percent from July’s 9.4 percent.

In August, the number of unemployed persons increased by 466,000 to 15.9 million. Since the recession began in December 2007, the number of unemployed persons has risen by 7.4 million, and the unemployment rate has grown by 4.8 percentage points.

If laid-off workers who have settled for part-time work or have given up looking for new jobs are included, the so-called underemployment rate reached 16.8 percent, the highest on records dating from 1994.

The Federal Reserve (Fed) said in minutes from an August meeting, which were released Wednesday, that they expect the economy to recover in the second half of this year. But labor market conditions are still “poor.” In line with many private economists, the Fed expects the unemployment rate to top 10 percent by the end of this year.

Analysts expect businesses will be reluctant to hire until they are convinced the economy is on a firm path to recovery. Increasing job loss has become the biggest test for the Obama administration as the economy is showing more positive signs.

President Barack Obama said earlier this week that the country is “on the path to economic recovery”, but he also warned that “there is no doubt that we have a long way to go.”

VietNamNet/Xinhuanet