Whoops! Jobs Recovery Lost Steam In August

By: CNN; Paul R. La Monica and Greg Palmer
By: CNN; Paul R. La Monica and Greg Palmer

NEW YORK (CNNMoney) -- Yuck. The jobs market lost some steam in August, with only 142,000 full time jobs added last month.

Between 142,000 additional full time and 327,000 part time jobs lost, it was not a good month.

The consensus forecast from economists surveyed by CNNMoney was for a jobs gain of 226,000 jobs. The unemployment rate dipped slightly to 6.1%, down from 6.2% in July. That was in line with estimates, but it wasn't much for job seekers to celebrate.

This breaks a streak of six straight months with more than 200,000 jobs added.

It may raise questions about the strength of the job market's rebound. Many Americans already do not feel that the job market has fully recovered from the Great Recession.

Federal Reserve chair Janet Yellen has also repeatedly stressed that the labor market could be stronger. So Friday's numbers are unlikely to change the Fed's decision to keep a key short-term rate at historic lows for the foreseeable future in an effort to stimulate more job growth. U.S. stock market futures bounced up slightly because of this expectation.

But it's not all bad news. The economy has averaged a gain of nearly 220,000 jobs added a month, and the payroll gains were revised higher for both June and July.

Hourly wages rose slightly as well. They are up 2.1% over the past 12 months. However, that's only slightly higher than the inflation rate, so workers won't feel much better off.

There were solid job gains in several industries that tend to pay well, such as business and professional services and health care. Jobs were added in the construction sector as well, a possible sign that the housing market is continuing to bounce back.

The so-called "underemployment rate," which counts discouraged workers who have given up looking for jobs and people working part-time who would rather have a full-time job, is 12%. That's down from July but still nearly double the official unemployment rate.

The raw numbers indicate that 146,368,000 people are working in the United States compared to 146,047,000 in 2007. However the the 2007 population was 231,867,000 compared to the current population of 248,229,000.

The number of people reported as unemployed now stands at 9,591,000 with 92,269,000 not in the labor force, an increase of 268,000 from July when it was 92,001,000 and only 78,743,000 in 2007.

The percentage actually "In Civilian Labor Force" dropped 0.1 percent to 62.8% from 62.9 in July and 66% in 2007.

You can check these raw numbers from the government by CLICKING HERE

According to the BLS, seasonally adjusted full time employment increased from 118,489,000 in July to 118,616,000 in August.

However part-time employment plunged 327,000 jobs from 28,070,000 in July to 27,743,000 in August.

You can find these BLS labor statistics for yourself by CLICKING HERE


Comments are posted from viewers like you and do not always reflect the views of this station.
powered by Disqus
631 SW Commerce Pl. Topeka, Kansas 66615 phone: 785-272-6397 fax: 785-272-1363 email: feedback@wibw.com
Copyright © 2002-2014 - Designed by Gray Digital Media - Powered by Clickability 274084891 - wibw.com/a?a=274084891
Gray Television, Inc.