Business Highlights

Despite recovery, employers aren't ready to hire

WASHINGTON (AP) — The unemployment rate rose to 9.8 percent in September, the highest since June 1983, as employers cut far more jobs than expected.

The report shows that the worst recession since the 1930s is still inflicting widespread pain and underscores one of the biggest threats to the nascent economic recovery: that consumers, worried about job losses and stagnant wages, will restrain spending. Consumer spending accounts for about 70 percent of the nation's economy.

Meanwhile, a surprise drop in factory orders extended the recent string of disappointing economic readings. The Commerce Department said factory orders fell 0.8 percent in August following a 1.4 percent gain in July. Analysts had been expecting a 0.7 percent increase.

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Stocks fall following disappointing jobs report

NEW YORK (AP) — Stocks posted modest losses Friday after a disappointing monthly jobs report brought fresh concerns that a recovery in the troubled labor market may be a long way off.