Unemployment rate for August falls because 368,000 people stopped job search

By Catholic Online (NEWS CONSORTIUM)
9/10/2012
Catholic Online (www.catholic.org)

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.

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LOS ANGELES, CA (Catholic Online) - The majority of those who have simply given up 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.

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General Intention: The Faith of Christians. That in this Year of Faith Christians may deepen their knowledge of the mystery of Christ and witness joyfully to the gift of faith in him.
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Keywords: Economy, job creation, August, re-election, President Obama

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1 - 5 of 5 Comments

vance
8 months ago
Rob, you're right, we need to throw out the Marxists in the House and in the Senate. I agree that Obama needs to be a one term president. He shouldn't have been elected in the first place. We have just reached a new HIGH in welfare numbers - 8.8 MILLION people. I know this makes you happy but now there is a new LOW - the numbers in the middle class is now at 1950's levels. But what should we expect from a domestic enemy. We are now witnessing the world exploding with a dead American Ambassador and staff, Iran deploys a Russian submarine, China is threatening military action against Japan and what is your Dear Leader doing???? NADA. He's hiding, he's on David Letterman, and fund raising. He could care less because he wants America dead and the Muslim Brotherhood to come to power. And you want this guy re-elected? And let's not forget the loss of 1st Amendment Rights to the Free Exercise of Religion. Massachusetts has already stripped the Catholic Church of its Adoption Services because the church refused to adopt children out to homosexuals. Next comes the fines and church closures for refusing to provide contraceptives and abortions. And you want this guy in office another term??
sandyreece
8 months ago
The joblessness rate fell in August, but that was only the result of more individuals giving up their job search, according to economists. The careers report for the month was yet again bleak. Article resource: average mortgage down payment
Rob
8 months ago
vance, and we must throw out the house repbulicans and senate as well. They have been so busy trying to make Obama a one term president that they all have failed us. You don't have the economic collapse we had and expect things to bounce right back, particularly given how little anyone in DC has done in regards to jobs.
vance
8 months ago
Thank you Catholic Online for exposing the truth. This is a truth that has been hidden for the last 3 years. The real Unemployment figures would be 20% or more like the Great Depression of the 1930's. 368,000 people out of work per month. These have been the consistent numbers for the last 31/2 years. And these numbers are still coming without end unless we put a stop to Obama and the Party of Harry Reid and Nancy Pelosi.
Kasoy
8 months ago
Another round of QE... watch the metal prices zoom up some more... more money for Soros and his fellow speculators to borrow... hold on to your cash, expect the interest rates to go up soon... there'll be plenty of high yielding bonds soon

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