(RALEIGH) -- Despite an employment increase of 16,500 workers, North Carolina’s labor market retracted last month. The unemployment rate rose three-tenths of a percent in August to 10.4 percent. The number of persons out of work grew by almost 12,000.

“Since January, the data shows private sector job growth,” said ESC Chairman Lynn R. Holmes. “The Employment Security Commission continues to work with our workforce development partners to provide assistance to our customers statewide.”

The North Carolina seasonally adjusted unemployment rate was 10.4 percent in August, an increase of 0.3 of a percentage point over the month, and 0.3 of a percentage point higher than August 2010. Over the month, the number of persons unemployed grew by 11,747. Nationally, August’s unemployment rate remained unchanged over the month at 9.1 percent.

Seasonally adjusted total nonfarm industry employment, as gathered through the monthly establishment survey increased by 16,500 to 3,882,500 in August. The largest over-the-month employment increase occurred in government (+13,600). Since January, private sector jobs have increased by 31,600. The government sector is down 11,000 in that same time frame.