U.S. unemployment hits 26-year high, rising to 9.7 percent

American unemployment figures in August hit a 26-year high, rising to 9.7 percent and reflecting an economy that remains uncertain.

While the Obama administration continues to suggest that the $787 billion federal stimulus program is working, the Labor Department released unemployment figures on Friday that reflect a fragile job market and an economy that is still moving in the wrong direction. Ahead of the Labor Day weekend, the Labor Department's unemployment figures represented a 26-year high in jobless claims - rising to 9.7 percent nationally in August. U.S. employers cut 216,000 jobs in August, a figure that was less than analyst expectations. The 9.7 percent August number is up from July's 9.4 percent, but the decline in payrolls was the smallest in a year. Since the recession began in December of 2007, the U.S. economy has lost 6.9 million jobs.