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US sees 54,000 jobs lost in August

3 September 2010 Last updated at 19:13 BST

The US economy shed another 54,000 jobs in August, the third month in a row that jobs have been lost, Labor Department figures have shown.

As a result of the overall fall in job numbers, the unemployment rate rose to 9.6%, from 9.5% in July.

However, analysts welcomed news that the the private sector had created a better-than-expected 67,000 jobs.

Caroline Hepker reports.