August jobs figures released Friday served up another reminder of Obama’s biggest vulnerability. The month saw nonfarm payrolls add 96,000 jobs, according to data released by the Labor Department. And while the national unemployment rate fell from 8.3 percent to 8.1 percent, that was because more Americans gave up looking for work.
The unemployment rate, derived from a separate Labor Department survey of households, has exceeded 8 percent since February 2009, the longest stretch in monthly records going back to 1948.
Payrolls rose less than projected in August and the unemployment rate was unexpectedly driven down by Americans leaving the labor force, boosting the odds of additional Federal Reserve easing to spur a faltering recovery.
Who would ever imagine the unemployment rate falling due to people giving up on work, instead of people being put to work.
So I hope obama isn’t pounding his chest over Friday’s report. If President Obama were reelected we would have four more years of the last four years.
Treasuries and gold rose on bets the figures make it more likely Fed policy makers will expand record monetary stimulus next week after Chairman Ben S. Bernanke called unemployment a “grave concern.” The report dealt a blow to President Barack Obama one day after he accepted the Democratic Party’s nomination for a second term.
“This is definitely a setback for the labor market and the economy,” said Michael Feroli, chief U.S. economist at JPMorgan Chase & Co. in New York and former economist for the Fed. “This clearly validates Bernanke’s concern. We have Europe, the fiscal cliff, and it is a generally cautious business environment.”
Some companies are planning to reduce staff. Mountain View, California-based Google Inc. (GOOG) said on Aug. 13 it will cut about 4,000 positions at its Motorola Mobility Holdings Inc. unit, with about one-third of the reductions coming in the U.S. Printer maker Lexmark International Inc. (LXK) on Aug. 28 announced plans to eliminate 1,700 jobs globally.
For Kimberly Hackler of White, Georgia, the job search has been “frustrating at best, a little disheartening.” The 49- year-old has been looking for work since November, applying for about 190 positions.
Hackler said. “I don’t see the economy improving anytime soon. I am concerned it could get worse.”
“There’s almost nothing the president has done in the last three and a half, four years that gives the American people confidence he knows what he’s doing when it comes to jobs and the economy,” Romney told reporters in Sioux City, Iowa, where his campaign plane landed.
Obama made only a passing mention of the jobs figures at his first post-convention campaign event in Portsmouth, New Hampshire. “We know it’s not good enough,” Obama said. “We need to create more jobs, faster.”
He didn’t mention anything about the unemployment numbers in his DNC speech either!!
Factory employment fell by the most in two years, temporary-help companies eliminated positions for the first time in five months, and the share of the working-age population in the labor force slumped to the lowest since 1981.
The jobless rate fell from 8.3 percent as 368,000 Americans left the labor force. Unemployment was forecast to hold at 8.3 percent, according to the survey median. Estimates in the Bloomberg survey ranged from 8.1 percent to 8.4 percent.
Factory payrolls decreased by 15,000, compared with a survey forecast for a 10,000 increase, after a 23,000 gain in the previous month. Automakers cut 7,500 jobs last month.
Companies from Intel Corp. to FedEx Corp. are sounding alarms on the outlook for the world’s largest economy as global growth cools.
Intel, the world’s largest semiconductor maker, today slashed its third-quarter sales prediction amid declining demand for personal computers from corporate customers. FedEx this week projected its first decline in quarterly earnings in almost three years as slowing growth hurt demand for the express packages that provide most of its sales.
Don’t give obama 4 more years to finish off our economy…angel