96,000 Jobs, Many Drop Out of Job Market

[deacon blues]

Obama isn't working. The economy needs about 150,000 jobs per month just to keep up with the population. Obama does not know how wealth is created, he only knows how to transfer wealth. If you took your car to a mechanic and he promised to fix your car at a certain price by a certain time and when you came to pick up your car he said, "well it's going to cost more and I need more time" you would say, "forget it, I'm going to a different mechanic."

It's time to get a grip. Obama promised to fix this economy in his first term. He failed. Now he's asking for more money and more time. We the people need to fire him and hire a new president.

From the Associated Press in the Atlanta Journal and Constitution Saturday:

American employers cut back sharply on hiring last month, crushing hopes that the job market was improving and putting more pressure on the Federal Reserve to give the sluggish economy another jolt.

The Labor Department said Friday that employers added just 96,000 jobs in August, down from 141,000 in July and too few to keep up with population growth. The unemployment rate fell to 8.1 percent from 8.3 percent, but only because many people gave up looking for work, so they were no longer counted as unemployed.

The latest numbers were "downright dismal," TD Economics senior economist James Marple said in a description echoed by many others.

The economy remains hobbled in the aftermath of the deepest recession since the 1930s and simply isn't expanding fast enough to spark more hiring.

Consumers, whose spending accounts for more than two-thirds of economic activity, have been whittling down debts and spending cautiously. The government reported last week that economic growth clocked a disappointing 1.7 percent annual pace in the April-June quarter.

The economy is expected to grow at an annual rate of around 2 percent for the rest of the year, consistent with only 90,000 new jobs a month.

The disappointing numbers are a blow to President Barack Obama's re-election campaign. Unemployment is down from a peak of 10 percent in October 2009, but no incumbent president since Franklin D. Roosevelt has faced re-election with unemployment higher than 7.8 percent.

Republican presidential challenger Mitt Romney declared that "the weak jobs report is devastating news for American workers and American families ... a harsh indictment of the president's handling of the economy."

Obama said August's hiring was "not good enough" and it's "a long tough journey" to recover from the recession that officially ended more than three years ago.

Despite the bad report, stock prices rose, most likely on expectations the Fed will act next week. The Dow Jones industrial average rose 14.64 points to 13,306.64. The Standard & Poor's 500 rose 5.80 to 1,437.92.

The job market got off to a strong start this year. Employers added an average 226,000 jobs a month from January through March. But they couldn't sustain that pace, and hiring slowed to a monthly average of 67,000 from April through June.

It looked like things got back on track in July, when the government initially reported 163,000 new jobs, but the Labor Department revised that gain down by 22,000 on Friday.

The August jobs report looks even uglier upon closer inspection. The unemployment rate fell largely because 368,000 Americans dropped out of the labor force. The government counts people without jobs as "unemployed" only if they are actively looking for work.

The percentage of adult Americans either working or seeking work fell from 63.7 percent in July to 63.5 percent in August. That was the lowest percentage in 31 years. The percentage has been falling steadily since peaking at 67.3 percent in 2000.

"A declining labor force is not (a) sign of an improving economy," says Joel Naroff, president of Naroff Economic Advisors.

Hourly pay fell. Manufacturers cut 15,000 jobs, the most in two years. And temporary help jobs, which often signal where the job market is headed, dropped by 4,900 in August.

The economy lost 7,000 more government jobs last month. Since the recession ended in June 2009, federal, state and local governments have slashed 670,000 jobs, partially offsetting hiring by private companies.

It's the first time since World War II that governments have shed jobs this deep into an economic recovery. At this point — three years and two months— into the nine previous postwar recoveries, government jobs had risen an average of 8 percent. This time, they're down 3 percent.

Most of the government cuts have been made by states and localities. Some school districts in Pennsylvania, for example, have had to lay off teachers after the state cut subsidies.

Kayla Middleton, 26, was one of about 70 teachers furloughed this year by the Reading School District. Middleton says because she has such little seniority "I knew there was no way I was escaping."

The job creation and unemployment numbers come from separate surveys. One asks mostly large companies and government agencies how many people they employed during the month. This survey produces the number of jobs gained or lost.

The other is the household survey. Government workers ask whether the adults in a household have a job. Those who don't are asked whether they're looking for one. If they are, they're considered unemployed. If they aren't, they're not considered in the workforce and aren't counted as unemployed. The household survey produces each month's unemployment rate.

The downbeat jobs news convinced many economists that the Fed will come to the rescue. At its last meeting, the Fed's policy committee decided that action "would likely be warranted fairly soon" unless it saw evidence of "a substantial and sustainable strengthening" of the economy. Many economists expect the Fed to announce a third round of bond purchases at its Sept. 12-13 meeting. The goal would be to drive down long-term interest rates to stimulate borrowing and spending.

Anthony Chan, chief economist at Chase Wealth Management, said further Fed action would likely send stock prices up, making consumers feel wealthier and more willing to spend.

As bad as things are, they could get worse.

Europe is in or close to a full-blown recession, which could dent the exports that have been one of the U.S. economy's few sources of strength. And a debt crisis threatens to force several European countries to stop using the euro currency. The breakup of the 17-country eurozone could cause a global financial panic as countries replaced solid euros with local currencies of dubious value.

Political bickering in Washington could plunge the U.S. economy back into recession if Democrats and Republicans can't reach a budget deal by the end of the year. Under rules designed to force a compromise, failure to reach agreement would trigger $600 billion worth of spending cuts and tax hikes starting next year. The draconian moves would send the economy over a so-called fiscal cliff and probably into recession.

Still, Sherry Cooper, chief economist at BMO Financial Group, saw reasons for optimism. Europe could be rescued by the European Central Bank, she says.
On Thursday, ECB President Mario Draghi unveiled an ambitious plan to buy unlimited amounts of European government bonds to help lower borrowing costs for countries straining to manage their debts.

Cooper also noted that "the U.S. housing market is finally on the upswing."
Pinnacle Homes, a construction-management company in Las Vegas, shrank from 20 employees to seven after the housing market collapsed five years ago. Company president Frank Wyatt says business is slowly picking up, but "we're not ready to add anybody yet."

For now, the American economy remains sluggish, and 12.5 million Americans are locked out of jobs. Megan Baker, 23, of Warrenton, Va., has "been applying to jobs almost nonstop" since she graduated from college last year. She hasn't landed one yet. Usually, she doesn't even hear back.

"I have applied to so many jobs that I've lost track," she says. "I try to tailor my resume and cover letters to each job, but now I am just becoming discouraged and want to give up."

[canam]

Originally Posted by deacon blues

Obama isn't working. The economy needs about 150,000 jobs per month just to keep up with the population. Obama does not know how wealth is created, he only knows how to transfer wealth. If you took your car to a mechanic and he promised to fix your car at a certain price by a certain time and when you came to pick up your car he said, "well it's going to cost more and I need more time" you would say, "forget it, I'm going to a different mechanic."

It's time to get a grip. Obama promised to fix this economy in his first term. He failed. Now he's asking for more money and more time. We the people need to fire him and hire a new president.

From the Associated Press in the Atlanta Journal and Constitution Saturday:

[CC1]

I read that about four times as many people as the 96,000 new job ones gave up on finding employment last month and so were not counted.

I also read somewhere that if you included all of the people who have given up on finding a job since Obama took office the unemployment rate would be a tad over 11% instead of 8.1%.

[bbyrd009]

Stop looking for a job, and get to work.
And you are blaming the O for something
God would surely take credit for.

This prevailing pov, while easy
to assimilate, is a denial of Scripture,
and a mis-characterization of the position
a believer should find himself in, right now.

If you are a believer, and think you live
in a democracy, with unemployment et al,
then I feel sorry for you, for you are missing
out on the primary temporal benefits of life
in the Kingdom. Um, we got no unemployment, here.

[deafdriscoll]

This is not Obama's fault. When was the last time you bought American made stuff. Now come on people! Adam blamed Eve and Eve blamed satan. A christian takes responsiblity first. So, you want a job. buy American, I do when ever possible. My american made stuff cost 2-3 times as much but last 2-3 times longer than that other stuff. So, it cost the same.
I will not buy stuff made in Islamic countries, they hate us.

[Michael Phelps]

Originally Posted by deacon blues

Obama isn't working. The economy needs about 150,000 jobs per month just to keep up with the population. Obama does not know how wealth is created, he only knows how to transfer wealth. If you took your car to a mechanic and he promised to fix your car at a certain price by a certain time and when you came to pick up your car he said, "well it's going to cost more and I need more time" you would say, "forget it, I'm going to a different mechanic."

It's time to get a grip. Obama promised to fix this economy in his first term. He failed. Now he's asking for more money and more time. We the people need to fire him and hire a new president.

From the Associated Press in the Atlanta Journal and Constitution Saturday:

Obama's response? It's the Republican's fault, if Congress would sign the bill he placed on their desk over a year ago, it would create over a million jobs.

Hmm, wonder what that bill is, and what the details are?

[BeenThinkin]

Originally Posted by Michael Phelps

Obama's response? It's the Republican's fault, if Congress would sign the bill he placed on their desk over a year ago, it would create over a million jobs.

Hmm, wonder what that bill is, and what the details are?

If you asked him to produce it, he'd probably say "the dog ate it!"

BT

[RandyWayne]

Originally Posted by deafdriscoll

This is not Obama's fault. When was the last time you bought American made stuff. Now come on people! Adam blamed Eve and Eve blamed satan. A christian takes responsiblity first. So, you want a job. buy American, I do when ever possible. My american made stuff cost 2-3 times as much but last 2-3 times longer than that other stuff. So, it cost the same.
I will not buy stuff made in Islamic countries, they hate us.

It also doesn't shrink like the bargain brands. Wait. That's Jimmy Dean Sausage.....

On a serious note. Should I also pay 20-50% more on average by buying local versus buying on Amazon or some other online vendor?

[Michael Phelps]

Originally Posted by deafdriscoll

This is not Obama's fault. When was the last time you bought American made stuff. Now come on people! Adam blamed Eve and Eve blamed satan. A christian takes responsiblity first. So, you want a job. buy American, I do when ever possible. My american made stuff cost 2-3 times as much but last 2-3 times longer than that other stuff. So, it cost the same.
I will not buy stuff made in Islamic countries, they hate us.

I agree with you on this point, for the most part......but, the fact remains, a President shouldn't be upset when people call him out on the fact that he is not fulfilling the promises he made, whether it's his fault or not....he should have known from the start that he would have limited power over corporations....it is free enterprise, and unless the government sinks bailout money into them, the corporations are pretty much free to do what they want to do in regards to moving jobs to foreign countries. So, to make outlandish claims about creating astronomical quantities of new jobs is speculative, at best.......unless they are all government jobs........

[Light]

Originally Posted by Michael Phelps

I agree with you on this point, for the most part......but, the fact remains, a President shouldn't be upset when people call him out on the fact that he is not fulfilling the promises he made, whether it's his fault or not....he should have known from the start that he would have limited power over corporations....it is free enterprise, and unless the government sinks bailout money into them, the corporations are pretty much free to do what they want to do in regards to moving jobs to foreign countries.So, to make outlandish claims about creating astronomical quantities of new jobs is speculative, at best.......unless they are all government jobs........

Cut ALL tax breaks & add larger import fee's to these companies.