Saturday, September 8, 2012
Unemployment drops to 8.1%?
Now the depressing details of the jobs report:
– Nonfarm payrolls increased by only 96,000 in August, the Labor Department said, versus expectations of 125,000 jobs or more. The manufacturing sector, much touted by the president in his convention speech, lost 15,000 jobs.
– Since the start of the year, job growth has averaged 139,000 per month vs. an average monthly gain of 153,000 in 2011.
– While the unemployment rate dropped to 8.1% from 8.3% in July, it was due to a big drop in the labor force participation rate (the share of Americans with a job or looking for one). If fewer Americans hadn’t given up looking for work, the unemployment rate would have risen.
– Reuters notes that the participation rate is now at its lowest level since September 1981.
– If the labor force participation rate was the same as when Obama took office in January 2009, the unemployment rate would be 11.2%.
– If the participation rate had just stayed the same as last month, the unemployment rate would be 8.4%.
Actual Labor statistics (http://bls.gov/news.release/empsit.nr0.htm)
Looking at only one number, it looks like P.O. is doing better, but actually fewer people are employed and more people are getting discouraged. Yesterdays video on people who want to eliminate corporate profit can see the results. If business has no reason to hire (i.e., no higher profit) they will not hire more people. If there is a anti-business administration, they will not hire people!
In November, we have a chance to change things. Romney may not be perfect, but anyone has to be better than what we have now!