The U.S. unemployment rate rose 0.1 percent to 9.6 percent in August from July as the economic rebound shows clear signs of a slowdown, the New York Times reported.

However, according to the U.S. Department of Labor, private employers added 67,700 jobs in August, which was more than forecast.

The unemployment rate was pushed up by the loss of 121,000 government jobs, as many state and local governments faced harsh budget deficits. This total included 114,000 temporary census positions. Overall, the economy saw a net loss of 54,000 jobs.

Today’s report said nonfarm payrolls increased by 41,000, far better than economists’ estimates of a decline of 105,000 in August. The number signaled that the economic recovery was proceeding at an uneven pace.

Last week, the U.S. Department of Commerce revised down its estimate for growth in the second quarter to an annual rate of 1.6 percent from 2.4 percent. A projected 1.5 percent to 2.5 percent rate of growth for the second half of the year may not be enough to jump-start the rebound.

On average, corporate profits were robust in the second quarter as many companies improved revenues via cost-cutting measures, but the outlook for the third and fourth quarters is lukewarm.

On Monday, President Barack Obama said his administration was considering new measures to shore up the economy.