Unemployment rate for August falls because 368,000 people stopped job search
96,000 jobs added in August, down from 141,000 jobs in July
August was a very disappointing month for job creation and new jobs. The economy added 96,000 jobs in August, down from 141,000 jobs in July, the Department of Labor reported. More people have simply stopped looking for work. While the unemployment rate fell to 8.1 percent, from 8.3 percent in July, that's largely due to the fact that 368,000 people stopped looking for work.
The majority of those who have simply given up their job search for the time being are young people. Just 63.5 percent of the working-age population was either employed or actively looking for work, which is a shameful 30-year low.
"These numbers are not very strong," Joseph LaVorgna, chief U.S. economist at Deutsche Bank says. "The job market is improving, but only gradually."
Economists say that at least 150,000 jobs need to be created each month to keep pace with the growing population.
Adding insult to injury was the fact that the number of hours people worked remained flat and wages were stagnant, LaVorgna noted.
"Clearly, it's disappointing, but it's not horrible," Scott Brown, chief economist at the investment management firm Raymond James says. "We're not losing jobs."
One bright side to the recent economic news is that employment in restaurants and bars increased by 28,000, which suggests that people may have more disposable income. Professional and technical service jobs rose by 27,000, and the health care industry added 17,000 jobs.
Manufacturing was particularly hard hit last month, which lost 15,000 jobs. The government continued to shed jobs, losing another 7,000 positions.
This comes as dire news to the committee to re-elect President Barack Obama. They had been hoping to report on stronger economic news, two months before the elections in November.
The state of the recovery remains the chief hurdle President Barack Obama needs to leap to win re-election in November.
The recent data was further evidence of a "Goldilocks economy," which is not too hot, not too cold, but not just right either, that could prompt the Federal Reserve to take new steps to boost growth.
"This weak employment report, in jobs, wages, and hours worked and participation is probably the last piece the Fed needs before launching another round of quantitative easing next week. QE will boost equities, damage the dollar and do little for the economy, but what else can an activist Fed do?" Joseph Trevisani, chief market strategist at Wordwide Markets says.
© 2012, Catholic Online. Distributed by NEWS CONSORTIUM.
Pope Francis Prayer Intentions for December 2013
General Intention: Victimized Children. That children who are victims of abandonment or violence may find the love and protection they need.
Missionary Intention: Prepare the Savior's Coming. That Christians, enlightened by the Word incarnate, may prepare humanity for the Savior's coming.
Rate This Article
Leave a Comment
More Business & Economics News
- Black gold, Texas tea! How a major discovery in a tiny Australian mining town is about to change your world
- Unregulated? Bitcoin goes mainstream and why that's a good thing
- Casino mogul vows all-out war on online gambling
- Prepaid debit card, without fees offered by Google
- Digital killing the dinosaurs, Tribune Co. to cut 700
- Merit found in employees' complaints against Wal-Mart
- Same old tactic: Treasury to issue $1trillion in new debt at beginning of 2014
- PlayStation 4 sells one million units in U.S., Canada in first 24 hours
- U.S. Postal Service ONLY loses $5 billion this year
- Fr. Paul Schenck: Finding Living Faith on Catechetical Sunday
- The Movie Yellow: Incest as 'Normal' and Cassavates's Slides Into the World of Woes
- The Chicago School Teachers Strike Reveals the Need For School Choice
- The Sexual Barbarians and the Dissolution of Culture
- The Happy Priest Challenges Us to Ask: Who is Jesus to Me?
- Michael Coren on Canadian Public Schools: Teachers, leave those kids alone
- We Cannot Ignore Our Consciences: Cardinal Dolan On Religious Liberty
- In the Face of Danger, Successor of Peter Travels to Lebanon as a Messenger of Peace
- Reflections on the Dignity and Vocation of Women: Who or What?
Disclaimer: The columns, articles, advertisers claims and any other features provided on Catholic Online Business & Economics are provided for personal finance and investment information and are not to be construed as investment advice. Under no circumstances does the information in this content represent a recommendation to buy, sell or hold any security. The views and opinions expressed in an article or column are the author's own and not necessarily those of Catholic Online and there is no implied endorsement by Catholic Online of any advice or trading strategy.