August Jobs Report Falls Short of Expectations; Only 96,000 Jobs Created while 300,000+ Leave the Workforce; Unemployment Remains above 8% for the 43rd Consecutive Month – 9/7/12
The Unemployment Numbers are out for August 2012, and they are uniformly considered to be terrible. Only 96,000 private sector jobs were created, well below the expected 125,000. Even worse, the workforce shrank, with some 300,000 people leaving the workforce. The Unemployment Rate remains above 8% for a 43rd consecutive month at 8.1%, down slightly from 8.3% due to the shrinking of the workforce itself.
REUTERS: Jobs growth slowed more than expected in August, setting the stage for the Federal Reserve to pump additional money into the sluggish economy next week and dealing a blow to President Obama as he seeks reelection in November.
Nonfarm payrolls increased only 96,000 last month, the Labor Department said on Friday. While the unemployment rate dropped to 8.1 percent from 8.3 percent in July, it was largely due to Americans giving up the search for work.
The report’s weak tenor was also underscored by revisions to June and July data to show 41,000 fewer jobs created than previously reported. The labor force participation rate, or the percentage of Americans who either have a job or are looking for one, fell to 63.5 percent — the lowest since September 1981.
The lackluster report keeps the pressure on Obama ahead of the November vote in which the health of the economy looms large.
Economists polled by Reuters had expected payrolls to rise 125,000 last month, but some had pushed their forecasts higher after upbeat data on Thursday. . . Read More
REACTION
Workforce participation rate hits new three-decade low.
— Guy Benson (@guypbenson) September 7, 2012
Even Soledad isn’t spinning the 8.1%. Said that’s due to 368k dropping out.
— John Nolte(@NolteNC) September 7, 2012
RT @politico: June jobs growth revised down from 64,000 to 45,000, and July revised down from 163,000 to 141,000.
— Sean Hackbarth (@seanhackbarth) September 7, 2012
Unemployment ticks up for 20-24 year olds to 13.9% (previously 13.5%).
— Kristen Soltis (@KLSoltis) September 7, 2012
Terrible jobs report, shrinking labor force participation rates, downward revision, loss of manufac jobs
— James Pethokoukis (@JimPethokoukis) September 7, 2012
11.2%: Unemployment rate if labor force participation rate was the same as when Obama took office
— James Pethokoukis (@JimPethokoukis) September 7, 2012
There are actually 119k less people employed than in July. But labor force shrank by 368k so the U3 declines.
— Daniel Horowitz (@RMConservative) September 7, 2012
