Sept. 26--William Green, President of the American Federation of Labor, said tonight that 10,834,000 persons were unemployed in August, a gain of 40,000 over July.

In addition, Green warned that there is "no indication as yet that the fall season will make any permanent improvement in the situation."

His checkup of the unemployment situation showed:

The dull summer season in retail stores added 40,000 to the unemployed.

The drought meant less work for 50,000 farm laborers.

Railroads dropped 17,000 from their payrolls.

Trade union figures show a slight gain in fall activity this month.

Green said August and September unemployment figures show a "strong contrast" to the same months last year. In August, 1933, 800,000 went back to work in the President's reemployment program, he pointed out. This year no effort was made to create jobs and unemployment increased by 40,000.

In June this year the number of families on relief rolls was 3,716,755, only a slight drop from the number receiving federal and state aid last June, he said.