BUREAU OF Labor Statistics revealed the unemployment dropped from 8.3% to 8.1%, with 96,000 jobs added, but there was a loss of 15,000 manufacturing jobs.
Uncertainty of business owners about “where we’re headed” is part of what hit in these disappointing numbers, according to CNBC’s Becky Quick this morning.
Mark Zandi of Moody’s, who spoke with Chuck Todd this morning, doesn’t believe the Federal Reserve will offer QE3 until 2013, after the election.
Jobs growth slowed more than expected in August, setting the stage for the Federal Reserve to pump additional money into the sluggish economy next week and dealing a blow to President Obama as he seeks reelection in November.
Nonfarm payrolls increased only 96,000 last month, the Labor Department said on Friday. While the unemployment rate dropped to 8.1 percent from 8.3 percent in July, it was largely due to Americans giving up the search for work.
Government jobs dropped for the sixth straight month, which isn’t helping anyone.
Let’s end with the positive, from Dean Baker:
While most of the news is household survey was negative, there were a couple of bright spots. The percentage of unemployment due to people voluntarily quitting their jobs, a measure of workers’ confidence in the labor market, rose to 7.5 percent putting it near the winter levels. Also, the number of workers involuntarily working part-time, as well as the number of discouraged workers, both fell, pushing the broad U-6 measure of labor market slack to its lowest point since January of 2009.
This post has been updated.