Companies add 67K workers, but jobless rate rises

Private employers hired more workers over the past three months than first thought, lifting hopes for the weak economy ahead of the Labor Day weekend. But the unemployment rate rose in August for the first time in four months as more people entered the market looking for work.

Companies added a net total of 67,000 new jobs last month and both July and June's private-sector job figures were upwardly revised, the Labor Department said Friday.

Stocks surged after the report's release, but then lost some of their gains in early morning trading. The Dow Jones industrial average rose 52 points and broader indexes were all up.

While the report hardly suggests the economy is out of danger, it's a reassuring sign after weeks of troubling data and comes after some encouraging economic figures in the past week.

Scott Brown, an economist at Raymond James, said he sees no sign of the country slipping back into recession.