Jobless Rate Rises to 7.1%; 110,000 Factory Jobs Lost

The nation’s jobless rate rose slightly in September, to 7.1%, fueled by the biggest one-month loss of manufacturing jobs since the 1981-82 recession and a major increase in black unemployment, the Labor Department said today.

The increase in unemployment, the first since January, was 0.1% above the August rate, which was the lowest since April, 1980.

But a record 107.5 million people were working in September, an increase of 370,000 over the previous month.

The gain was offset by the loss of 110,000 factory jobs--the biggest one-month decline since November, 1982, at the low point of the last recession. Since Jan. 1, the department said, 338,000 factory jobs have disappeared.

Black Joblessness Jumps

Also contributing to the rise in unemployment was black joblessness, which jumped to 15.3% from August’s 14%.

The department listed 8.27 million people unemployed, an increase of 147,000 over August.

White House spokesman Larry Speakes chose to stress the gain in total employment, calling it “quite significant” and “indicative of an economy that continues to grow.”

The department’s quarterly report on what it calls “discouraged workers”--those who want jobs but have given up looking--showed their total in the July-September quarter was 1.2 million, little changed over the last year.

The largest job losses in manufacturing were felt in the machinery, electrical equipment and automobile industries, partially due to some strikes in September and layoffs for changeovers to 1986 auto models.

Teen-Age Rates Worsen

The unemployment rate for teen-agers rose half a percentage point to 17.8%.

Among black teen-agers, unemployment also worsened, moving to 38.3% from 34.4% in August.

The rate for Latinos rose to 10.4% from August’s 10.3%.

There was no change in unemployment among adult men, which remained at 6%. The rate for adult women inched up to 6.8% from the previous month’s 6.7%.

While factories, under heavy competition from foreign imports, have been losing jobs steadily throughout the year, jobs in the service industries have expanded by 770,000.

The department also reported the manufacturing industries have rebuilt only 53% of the jobs lost during the last recession, a long way from the full recovery already enjoyed by the service industries.