U.S. Unemployment Falls to 8.1 Percent on Weak Report

The August jobs report is not as good as expected with weak job growth and more people leaving the labor force.

The economy saw the addition of 96,000 jobs in August, while 368,000 people left the labor force entirely. The modest job gains, coupled with fewer workers, brought the unemployment rate down from 8.3 to 8.1 percent.

According to the U.S. Bureau of Labor Statistics, employment growth has averaged 139,000 per month in 2012, compared with an average monthly gain of 153,000 in 2011. Economists predicted 125,000 new jobs rather than the 96,000 that were delivered, reports CNBC.

A poor jobs report is considered bad news for President Barack Obama in the election, according to some experts.

“You could almost see if it’s a bad number, that could be perceived as good for the market, because that would help Romney,” Steve Massocca, of Wedbush Securities, told CNBC.

The national figures do not reveal how Connecticut fared in August, as the state Department of Labor will be releasing those figures later this month. In July, to the highest levels since October 2011 with an 8.5 percent rate.

When the figures were released, Gov. Dannel P. Malloy said, “The phrase ‘worst economic downturn since the Great Depression’ is used so often, we’ve become immune to the words. But they’re true. So, it should come as a surprise to no one that pulling the country and our state out of that downturn is hard. Really hard.”

Will Wilkin September 07, 2012 at 09:44 PM
Phony stats to hide the very high rate of real unemployment. The link below explains how the govt cooks the books on unemployment, inflation & GDP. For example, if unemployment were measured now the same as in 1980, our rate of unemployment is around 22%. Inflation is underestimated now by the assumption that when food rises, other foods that rose less will be substituted. http://www.counterpunch.org/2011/08/01/the-road-to-armageddon-2/ EXCERPT: As 2011 progressed, the United States faced three simultaneous economic crises. One crisis arose from the loss of US jobs, GDP, consumer income, and tax base caused by corporations off-shoring their production for the US market. Instead of making their products at home with American labor and providing Americans with jobs and states and localities with tax revenues, US corporations provided countries such as China, India, and Indonesia with GDP, jobs, consumer income and a tax base... Another crisis was the financial crisis resulting from deregulation, fraud, and greed... The third crisis was the $1.5+ trillion annual federal budget deficits, which were too large to be financed without the Federal Reserve buying the Treasury’s new debt issues. Known as monetizing debt, ...the outpouring of Treasury debt raised concerns about the dollar’s exchange value and role as reserve currency, and raised fears of inflation... Any one of these crises was serious. All together, they implied economic Armageddon. END EXCERPT
Will Wilkin September 07, 2012 at 09:52 PM
Note that last line about "raised concerns about the dollar's role as reserve currency..." Get ready for the post-dollar world, in which trade deficits can only be paid for with an international currency other than the dollar --its time RIGHT NOW to replace "free trade" disasters with a MADE IN USA TRADE POLICY that will bring us not only balanced trade but full employment, centered around high value-added industries like mfg and the engineering R&D and other high-value multiplier jobs that come with mfg. That revival of mfg should be focused especially on those technologies most promising for prosperity in the 21st century, for example renewable energy and clean transportation and power infrastructure. With cooked stats like the govt offers and media parrot without analysis, instead we are frogs in the water getting hotter and hotter.
Will Wilkin September 07, 2012 at 09:57 PM
Heck you don't even need my link, the hocus pocus of lower unemployment is indeed in the first sentence of the article: "addition of 96,000 jobs in August, while 368,000 people left the labor force entirely. The modest job gains, coupled with fewer workers, brought the unemployment rate down from 8.3 to 8.1 percent." What happened to those 368,000 workers who "left the workforce"? They didn't disappear from the country, just from the count.
Will Wilkin September 08, 2012 at 09:59 PM
Let’s have a look at those 96,000 jobs. What kind of high-tech, high-income super jobs is “the world’s only superpower, the indispensable nation, the world’s greatest economy and capitalist heaven” creating? The answer is lowly paid third world jobs, which is why there is not and cannot be an economic recovery. All the good jobs have been moved offshore in order to maximize the incomes of the rich. [snip: stat analysis of jobs created, click link to read] The “powerful American economy” is an economy that cannot produce its own clothes and shoes, or the manufactured products, including high technology products, that it consumes, or its own energy, all of which it imports by issuing more debt. The “great hegemonic American economy” is on the verge of total collapse, because the only way it can pay for the imports that sustain it is by issuing more debt and printing more money. Once the debt and money creation undermine the dollar as world reserve currency, the US will become overnight a third world country, much to the relief of the rest of the world. ----------------------------------------------- Above text is excerpted from: http://www.paulcraigroberts.org/2012/09/08/spinning-bad-financial-news-into-good-paul-craig-roberts/


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