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September 7, 2012

Another Miserable Jobs Report: Only 96,000 Jobs Created (With Mitt Romney's Reaction)

Topics: Political News and commentaries

The Bureau of Labor Statistics is out with yet another deeply disappointing jobs report, this time reporting that only 96,000 jobs were added to the economy in August, and while the jobless rate edged downward to 8.1%, that was not the result of improved employment - it came only from more people giving up and leaving the workforce:

Total nonfarm payroll employment rose by 96,000 in August, and the unemployment rate edged down to 8.1 percent, the U.S. Bureau of Labor Statistics reported today. Employment increased in food services and drinking places, in professional and technical services, and in health care.

The unemployment rate edged down in August to 8.1 percent. Since the beginning of this year, the rate has held in a narrow range of 8.1 to 8.3 percent. The number of unemployed persons, at 12.5 million, was little changed in August. ...

Both the civilian labor force (154.6 million) and the labor force participation rate (63.5 percent) declined in August. The employment-population ratio, at 58.3 percent, was little changed.

That's 96,000 jobs created when we need to create 125,000 new jobs per month just to keep up with population growth.

Ed Morrissey points out that the labor participation rate is a new 30-year low:

... lower than April's 63.6%. That's the reason for the decline in the jobless rate. The workforce decline artificially depresses the official unemployment rate. If we had the same level of civilian participation as we did at the beginning of the recovery in June 2009 (65.7%), we'd be looking at a jobless rate of well over 10%. The employment-population ratio dropped to 58.3% in August, not as low as last year's 58.2%, but still bouncing along a generational bottom. That measure was 59.4% at the beginning of the recovery.
CNBC reports that the previously rosy July report was revised down, as was June, and that the reported numbers were far less than expected:
[...] But job reports for June and July were revised lower. The June count fell from 64,000 to 45,000, while July's number came in at 141,000 from an originally reported 163,000.

"The unemployment rate remains elevated, and the duration of joblessness is unprecedented for many," said Kathy Bostjancic, director of macroeconomic analysis at The Conference Board. "These conditions could easily stretch into the early months of 2013."

The Labor Department's birth-death model, which approximates jobs created by new businesses during the month, added 87,000 to the total, making it primarily responsible for the net job gains.

Despite hopes that job creation would be better than expected, the monthly nonfarm payrolls report fell short of economist estimates that 125,000 jobs were added for the month. The government said private payrolls increased by 103,000, about half the 201,000 that ADP reported Thursday.

As Hugh Hewitt puts it - "The jobs picture in the country is simply a disaster":
Obama took a bad situation --a panic and a sharp recession-- and turned it into much worse, a near depression. His policies and proposals will make the already dire situation even worse. When somebody doesn't do the job, you've just got to let them go.
Mitt Romney's reaction to the bismal jobs report is both quick and blunt: "If last night was the party, this morning is the hangover":
If last night was the party, this morning is the hangover. For every net new job created, nearly four Americans gave up looking for work entirely. This is more of the same for middle class families who are suffering through the worst economic recovery since the Great Depression. After 43 straight months of unemployment above 8%, it is clear that President Obama just hasn't lived up to his promises and his policies haven't worked. We aren't better off than they were four years ago. My plan for a stronger middle class will create 12 million new jobs by the end of my first term. America deserves new leadership that will get our economy moving again.
Related: AP 'Fact Checks' Obama And Biden Speeches (The facts just don't support the Obama and Biden promises and claims on jobs ... nor anything else they said).

Posted by Hyscience at September 7, 2012 8:49 AM



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