Posted on 09/06/2013 6:35:37 AM PDT by Oldeconomybuyer
Edited on 09/06/2013 7:28:45 AM PDT by Admin Moderator. [history]
Job growth in the U.S. is slowing, the Labor Department confirmed today, reporting that 169,000 jobs were added in August as unemployment fell to 7.3 percent.
Economists were expecting a gain of 180,000 jobs, according to a Bloomberg survey. They expected unemployment to stay at 7.4 percent.
Last month, the Bureau of Labor Statistics reported the economy added 162,000 jobs in July. The bureau today revised that figure downward to 104,000 and it lowered the June figure to 172,000 from 188,000.
"Clearly the labor market is losing momentum," said Lindsey M. Piegza, managing director and chief economist at Sterne Agee, pointing out that the unemployment rate decreased for "inorganic reasons" as the labor force participation rate fell to 63.2 percent in August, the lowest since 1978.
The participation rate has fallen by 1.6 percentage points since the beginning of 2010.
"Some of this is due to the aging of the workforce but it reflects a weak labor market," said Stephen Bronars, senior economist at Welch Consulting. "The unemployment rate is declining for all the wrong reasons - people are dropping out of the workforce."
The difference in the unemployment rate between educated workers and workers with less schooling continues to widen. College grads face an unemployment rate of 3.5 percent while the unemployment rate is 11.3 percent for high school dropouts.
"There is some good news that more people are working full-time in August than in July, but generally this was a disappointing jobs report," Bronars said.
Investors watch the jobs report closely because the Federal Reserve has indicated it plans to cut its stimulative bond purchases as the labor markets gain momentum and economy improves.
"This morning's report confirms the opposite," Piegza said. "Labor market conditions remain stagnant at best. Good enough shouldn't be an incentive to taper but on the heels of strong ISM reports and an upward revision to second quarter GDP, if the Fed was looking for an excuse to taper they can find it."
On Tuesday, a report by the Institute for Supply Management, a trade group, said its manufacturing index showed the fastest factory expansion since June 2011. Last week, the Commerce Department reported that real gross domestic product increased at an annual rate of 2.5 percent in the second quarter, higher than the 1.7 percent advance estimate issued in July.
Boston College economics professor Robert Murphy said the jobs report is not likely to change the consensus that has developed concerning the Fed tapering back later this month on its bond buying program. Other recent data, such as auto sales reaching post-recession highs, indicates the employment report for August is unlikely to change the dynamic toward a gradual exit by the Fed from its stimulus, Murphy said.
Meanwhile, the number of Americans applying for unemployment benefits is near a five-year low, according to the Labor Department's jobless claims report on Thursday.
Private payroll provider ADP said businesses added 176,000 jobs last month, a drop from its figures in June and July.
Job growth in the U.S. is slowing, the Labor Department confirmed today, reporting that 169,000 jobs were added in August as unemployment fell to 7.3 percent.
Economists were expecting a gain of 180,000 jobs, according to a Bloomberg survey. They expected unemployment to stay at 7.4 percent.
////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////
Those two sentences together make no sense whatsoever to a sane person.
Although the national unemployment rate dropped from 7.4 percent to 7.3 percent in August, the number of Americans who actually held jobs during August dropped 115,000 from July.
////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////
In what universe does this statement make sense?
>>In what universe does this statement make sense?
It makes sense in the Obamaverse. The middle class is being eradicated and no one but the middle class cares—and most of them are too busy watching football and reality shows.
The rich get richer.
The welfare class gains clout as new people add to their ranks each month.
Everyone wins....except the workers.
Horrible drop out rate, labor force participation, etc. Obamacare is to blame, but Socialist policies are the real killer.
Idiot liberals. Carter left the economy in shambles and 4 more years of Carter would have been the end of the United States. Reagan improved the economy the most ever despite having to fight with idiot liberals in congress.
I forget the stat (a week-old FR thread), but something like 3 years ago for every 7 full-time new job hire there was 1 part-time job hire. Now it is something like 4 part-times for every 1 full time. I’m sure I got the numbers wrong, but it was something REALLY drastic like that that made me reread the sentence a few times.
Found it. I was close. And the flip-flop only took ONE YEAR!!!!!
http://www.freerepublic.com/focus/news/3060049/posts
Bureau of Labor Statistics data show that the ratio of part-time to full-time jobs has completely flipped this year from historical trends. Last year, six full-time jobs were created for every one part time job. This year, only one full-time job is being created for every four new part-time jobs....
With people dropping out of the job market, and others only getting parttime jobs, guess what folks? Social Security deposits are going to, if not already, taking serious hits for future payments.
That means that the working class are not going to be fully funded in their Social Security expected payments, while the welfare/Obama free phone people are going to drain more money from the Treasury, thus further crippling the economy.
Expect higher taxes on every level, local, state and federal, if the Democrat policies continue. Expect further cuts in the military, the space program (what’s left of it), and in national security (i.e. NSA, FBI, CIA, DIA, etc).
You don’t seriously think that Obama and his marxists in Congress are going to do any real tax reform, welfare reform, or stop far-left environmental policies that are destroying jobs in the mining (esp. coal) industry, some of the fishing industries, and other energy producing industries (i.e. nuclear power).
It is only going to get worse with planned attacks on diesel fueled engines (trains, trucks, cars and possibly planes), expanded ethanol production which will raise the price of basic foods and feed grains, cuts in lumber operations, denial of drilling permits on federal lands, and the expansion of failed solar energy companies funding.
Obama and his planners are reds, and unless we wake up very soon and thrown a lot of these leftist idiots out of Congress in 2014, America is going to become 2nd rate power and an illegal immigrants paradise.
The economy took a major hit. It halted. Companies are not investing in the future but are holding onto their cash.
The worst part of socialism is the boredom.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.