U.S. Unemployment Rate Rose in August

More Americans are reporting they are unemployed, but more are also looking for work.

Friday the Bureau of Labor Statistics reported the U.S. unemployment rate rose in August to 3.7% that's an increase from July of nearly 1.2%.

In a normal labor market, rising unemployment is a red flag. But even though today’s labor market is far from normal, last month’s rise in unemployment is actually an indication that the job market is normalizing, economists say.

Economists expected the rate to remain at July’s 3.5%, but experts say the increase may have to do with more people actively looking for work. Participation in the labor force also went up last month, according to the Bureau of Labor Statistics.

They say more people being available for work is good for the economy even if it causes the official jobless rate to rise.