U.S. Jobs Growth Slows In August

August jobs report new jobs

Looking for a job? Click here to get started.



By Lucia Mutikani

WASHINGTON -- U.S. 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.

The report's weak tenor was also underscored by revisions to June and July data to show 41,000 fewer jobs created than previously reported. The labor force participation rate, or the percentage of Americans who either have a job or are looking for one, fell to 63.5 percent -- the lowest since September 1981.

The lackluster report keeps the pressure on Obama ahead of the November vote in which the health of the economy looms large.

Economists polled by Reuters had expected payrolls to rise 125,000 last month, but some had pushed their forecasts higher after upbeat data on Thursday.

The economy has experienced three years of growth since the 2007-09 recession, but the expansion has been grudging and the jobless rate has held above 8 percent for more than three years -- the longest stretch since the Great Depression.

More: Clint Eastwood's Inflated Unemployment Count

Fed Chairman Ben Bernanke last week said the labor market's stagnation was a "grave concern," a comment that raised expectations for a further easing of monetary policy as soon as the central bank's meeting on Wednesday and Thursday.

The jobless rate peaked at 10 percent in October 2009, but progress reducing it stalled this year, threatening Obama's bid for a second term. An online Reuters/Ipsos poll on Thursday gave Republican challenger Mitt Romney a 1-point edge on Obama, 45 percent to 44 percent.

The lack of headway putting Americans back to work has also put the question of further monetary stimulus on the table at the Fed. The central bank has held interest rates close to zero for nearly four years and pumped about $2.3 trillion into the economy through two bouts of bond buying.

The weak report makes it more likely that the Fed will launch a third round of bond purchases next week. Since the beginning of the year, job growth has averaged 139,000 per month, compared with an average monthly gain of 153,000 in 2011.

Economists blame fears of the so-called U.S. fiscal cliff -- the $500 billion or so in expiring tax cuts and government spending reductions set to take hold at the start of next year unless Congress acts -- and Europe's long-running debt problems, for the slowdown in hiring.

Job creation last month was weak across the board, with manufacturing payrolls down 15,000, the first decline since September 2011. Factory jobs were inflated in July because automobile manufacturers kept plants running when they would normally shut them for retooling, economists said.

There was little improvement in construction employment, which added 1,000 jobs. Temporary hiring fell 4,900, declining for the first time since March.

Utilities payrolls saw a snap back, adding 8,800 after being depressed by the strike of about 9,000 workers in July.

Government payrolls declined 7,000, falling for a sixth straight month.

Average hourly earnings fell by one cent last month, highlighting the underlying weakness in the labor market.

The average workweek was steady at 34.4 hours.




Wall Street Flat on Weak Jobs Report





Don't Miss: Companies Hiring Now

Add a Comment

*0 / 3000 Character Maximum

2909 Comments

Filter by:
bkhman

To all Teachers, Manufacturing Professionals who belong to Labor Unions

To all Americans, fellow teachers, manufacturing professionals, & any yone who belongs to a Labor Union

As you see here in Chicago this in fact is a Crisis. Whether you are a Democrat & support President Obama & VP Biden or whether you are a Republican & support Mitt Romney & Paul Ryan this country needs strong leadership from the federal/executive level to the state level . Labor Unions are important & are there to protect its workers who sacrifice soo much of his or herself working long hours in unfair wokring conditions. Here for whatever reason there is a budget deficit in Chicago specifically that district. Everyone in America should understand how valuable teachers are as they help shape the minds of kids in todays society. Kids who lack ambition. Kids who unfortunately who life in home who where parents constantly abusing each other, kids who get abused by his her parent, kids who may have a learnimg disability or may be physically disabled, and even most recent kids who get bullied at school because of sexual preference, religion, nationality, or color of skin. We need our politicians to working together as time passes there will be more incidents of workers striking against its employer as their working conditions are being threatened. In thiscase here the big losers are the kids 7 parents who adore & respect his or her parents who has made impact of his his her child's life

September 10 2012 at 12:31 PM Report abuse rate up rate down Reply
bkhman

To all Republicans & Anti Pres Obama & VP Biden
Check out this main headline below as now Mitt Romney & Paul Ryan all of sudden want to keep parts of Pres Obama Health plan. What he will do his keep part Obams plans adding some of hios key point===== We can say ROMNEYCARE
Mitt Romney 'Not Getting Rid of All of Health Care Reform'
By DAVID KERLEY | ABC OTUS News – 15 hrs ago

Mitt Romney raised some eyebrows today when he said, "I'm not getting rid of all of healthcare reform."

That sounded quite different from the mantra he has repeated for months, that he would "repeal Obamacare."

Though the Romney campaign quickly said there has been no change in position, it's clear that despite the rhetoric, the Republican nominee would keep some of the popular elements of President Obama's healthcare reform act.

"Well, I'm not getting rid of all of healthcare reform," Romney said in an interview on NBC's "Meet the Press."

"Of course there are a number of things that I like in healthcare reform that I'm going to put in place," he said. "One is to make sure that those with pre-existing conditions can get coverage."

Romney added that he would like families to be able to insure members, including children, for an indefinite period.

But those elements, even though they sound a lot like parts of the president's plan, would only be implemented after the Affordable Care Act is repealed, the Romney campaign told ABC News.

While campaigning in Florida, the President attacked Romney's plans for healthcare.

"Their basic idea is that since government can't do everything, it should do almost nothing," Obama said at a rally in Orlando. "If you can't afford health insurance, hope you don't get sick."

The president used the battleground state of Florida, with its large population of seniors, to renew his attack on the Romney-Ryan plan for Medicare.

Even before his speech, the president had breakfast with two retired couples.

"Their voucher plan for Medicare would bankrupt Medicare," Obama later told the 3,000 supporters who attended the rally.

Armed with a new report from the left leaning think tank, the Center for American Progress, the president claimed the Romney plan will cost retiring seniors thousands of dollars for insurance coverage.

"No American should have to spend their golden years at the mercy of the Insurance companies," he said.

The report claims a retiring senior in 2023 would pay nearly $60,000 in additional fees for insurance coverage.

Romney's running mate was pressed Sunday to provide some of the specific tax loopholes the Republican ticket hopes to close if elected. Paul Ryan , on ABC's This Week with George Stephanopoulos, was asked if it is a "secret plan?" "No, no. What we don't want is a secret plan," Ryan said. But when pressed to specify loopholes now, the Congressman would only say, "The best way to do this is to show the framework, show the outlines of these plans, then to work with Congress to do this. That's how you get things done."

September 10 2012 at 11:50 AM Report abuse rate up rate down Reply
bkhman

To all Republicans & anti President Obama & VP Biden
Check out these 2 main stories below as AGAIN MITT ROMNEY 7 PAUL RYAN flipflopping different opinions more frequently ten hookers hooking up with johns. Looks to me that Governor Romney like lot of Pres Obams Health Plan. Watch he will add few addition to Pre Obamas H plan. Can we say ROMNEYCARE

Paul Ryan Challenged Over Vote for Budget Deal
Paul Ryan was challenged in an interview that aired today for being part of a group of Republicans and Democrats who agreed to a deal last summer that included automatic cuts to defense spending in exchange for the debt ceiling being raised.

His running mate, Mitt Romney, said it was a "big mistake" for Republicans, like Ryan, to agree to the deal in a different interview that aired today on NBC's "Meet the Press."

On CBS's "Face the Nation," Ryan admitted to being part of the bipartisan "super-committee" that voted for the cuts and defended why he voted for it.

"You know why I voted for it? Because I was working to find common ground with Democrats to get a down payment on deficit reduction," Ryan told Norah O'Donnell in an interview that was taped Saturday. "I worked with President Obama to find common ground to get a down payment on deficit reduction. It wasn't a big down payment, but it was a step in the right direction.

"Here's the issue: Bob Woodward just wrote this in his book -- the devastating defense cuts that are now coming due were insisted upon by the Obama administration so they would not have to face another debt ceiling increase before the election," he said.

In Bob Woodward's new book, "The Price of Politics" set to be released this week, he reports that it was White House officials who believed the prospect of massive defense cuts would make Republicans agree to deficit cuts known as the "grand bargain."

The House Budget Chairman also defended his vote by mentioning the legislation he put forward in May 2012 that would replace the $500 billion in defense cuts known as the sequester.

O'Donnell mentioned that after Ryan voted for the cuts, known as the Budget Control Act, Ryan put out a statement calling it a "victory" and a "positive step forward."

Since Ryan was tapped to be the GOP vice presidential candidate he has consistently railed against the president for what he calls the "reckless" and "devastating" defense cuts, without mentioning that he actually voted for them. He often uses language like "they," including in his speech to the Republican National Convention two weeks ago.

"He (Obama) created a bipartisan debt commission. They came back with an urgent report. He thanked them, sent them on their way and then did exactly nothing," Ryan said in his speech, not mentioning he was part of that bipartisan commission.
In the interview, Ryan continued to defend his vote saying he "voted for a mechanism that says a sequester would occur if we don't cut $1.2 trillion in spending in governme

September 10 2012 at 11:46 AM Report abuse rate up rate down Reply
cbaloyi

Cobalt

There was more fancy than fact in that report it seems to me, until the end. Comments such as "dealing a blow to Presidenet Obama as he seeks reelection in November", "lackluster report keeps the pressure on Obama ahead of the November vote," and "The jobless rate peaked at 10 percent in October 2009, but progress reducing it stalled this year, threatening Obama's bid for a second term" are all opinions and speculation on your part. I prefer the report with the facts, not your fancy contrived ideas related to President Obama. After all, if Mitt Romney wins the presidency, won't these concerns be relevant for him, also?

September 09 2012 at 2:28 PM Report abuse rate up rate down Reply
elaineblue63

To "bkhman." I truly believe that you and others like you could actually be compared to the unfortunate Gremans who mindlessly followed their "wonderful," "benevolent," leader to ruins....(Hitler.) Come out from your spell!

September 08 2012 at 4:44 PM Report abuse rate up rate down Reply
1 reply to elaineblue63's comment
bkhman

Elaine Mitt Romey & his wife have you & others brainwashed. He treats ALL MINORITIES(wOMEN, SENOIR CITIZENS, HISPANICS, GAYS, & LESBIANS) like trash. As a women, you have got be brainwashed, if you actually think he and ryan both support womens rights. Interview after Interview when anne romney has asked questions relation to women such equal pay act, abortion, rape, contaraceptions distribution, she with a arrogant, rude, defensive tone of voice refused to answeer the question.

September 08 2012 at 5:16 PM Report abuse rate up rate down Reply
bkhman

To everyone here is this message board debating about the 2 candidates:
Everyone here within this country has every right & should feel disgusted that A) Job Growth is not quick B) Jobs in fact are being sent Over Seas C) The Oil/ Energy industry is wreck & we are paying too much much $ for gas/public transportation D) Cost of food shopping is too much E. Health care coverage is too much
Frankly both candidates have not proposed& divulged credible plans to be swayed either way. Hopefully we fill find out specific plans for each of the mentioned areas just mentioned. With this said here as Americans we must have define the significance & importance of leadership. A EXCELLENT leader has proven to responded hands on to all major crises. A EXCELLENT leader has charisma and has complete confidence and NEVER EVER WAVERS ON ALL IMPORTANT DECISIONS despite opposition. President Obama & VP Biden during these 4 years responded immediately . As a reminder during these 4 years A. Osama Bin Laden,Al Qaeda, & Mohammed Khadafy finally got killed B. War Iraq & Afganistan lasted look time as many families lost a love one C. The automobile industry got destroyed nearly & our Pres & VP saved this industry(GM) D. Our Financial systems collapse as we saw lots of Financial jobs lost, many lawsuits involving insider trading, pay discrimination & institutions like Lehman Brothers & AIG gone bankrupt or have filled for bankruptcy E. too many severe weather conditions (hurricanes, earthquakes, tornadoes have destroyed people homes/businesses/lives F) oil industry got wreaked temporarily when there was major oil spill in New Mexico I) we had many tragedies where former workers of Guns, students at schools go gun crazy shooting people. A few weeks ago in Chicago movie theater a kid shot other youth with a gun. Also as most of you know outside the Empire State Building a former worker shot & nearly wounded innocent bystanders. Also 1 year lets not forget the Time Square Bomber. These are all life changing events.MAJOR MAJOR CRISES. Both politicians should have in fact responded in some way whether its visiting people or states which got affected by weather storms, drafting & proposing stricter gun laws. Clearly Pres Obama & VP Biden have proven with excellent knowledge and courage, & compassion respond. Politicians Mitt Romney & Paul Ryan never has once proven themselves as courageous leaders who are compassionate, remain poised when responding to crises of this nature which we all have unfortunately dealt with. As for foreign diplomacy issues WOULD NEVER EVER TRUST Ryan & Romney as many times they changed there positions. As for Socialist views Paul Ryan & Mitt Romney despise & hate minorities as they do not believe in abortion, womens right to choose. They also hate gays & lesbians.

September 08 2012 at 12:03 PM Report abuse -1 rate up rate down Reply
yuliarti

Huffington Post doing its best to spin us into another 4 years of doom and gloom!!

September 08 2012 at 7:52 AM Report abuse rate up rate down Reply
iammacha

Don't people realize that the numbers of unemployment benefit claims are dropping because people have exhausted their benefits and can not re apply until they have worked for at least 3 or 6 months to qualify to collect benefits again?! They ARE NOT dropping because people are getting jobs, they have just hit the limit of their benefits!! I hate the media trying to twist facts! @Jimballa, that's why food stamp applications are at a record high, its the only resort left for people who have used all their unemployment benefits. I am also confused on why some people collect benefits for YEARS while others only get it for months even though they have worked and paid into it for just as long. Wonder if that has something to do with what I heard about some government employees at an unemployment bureau stealing benefit money

September 08 2012 at 1:54 AM Report abuse +2 rate up rate down Reply
wrascil

WHO is barack hussain aka barry soetoro;
In 1971, Obama moved to Honolulu to live with his maternal grandparents
Of his early childhood, Obama recalled, "That my father looked nothing like the people around me—that he was black as pitch, my mother white as milk—barely registered in my mind." He described his struggles as a young adult to reconcile social perceptions of his multiracial heritage. Reflecting later on his years ( 1971 to 1979 ) in Honolulu. Obama wrote: "The opportunity that Hawaii offered—to experience a variety of cultures in a climate of mutual respect—became an integral part of my world view, and a basis for the values that I hold most dear." Obama has also written and talked about using alcohol, marijuana, and cocaine during his teenage years in hawaii, Obama was also member of the "choom gang", a self named group of friends that spent time together, smoked crack and marijuana.

September 08 2012 at 12:49 AM Report abuse +3 rate up rate down Reply
redflagraiser

....this is a banana republic administration with O'bummer at its helm....its a good thing the "Founders" were able to foresee such a political disturbance and let the people vote those idiots out of the house....so you think he's got the middle class in his best interests eh??....in a socialist communist regime, him and his rich cronies will control and only favor the poor, the middle class will be reduced and seize to exist....I heard that family income has dropped 10%, food stamps up 100% under this stooge....how's the value of your house lately ??....any red flags raised yet ??....he's even advertising free US food stamps in Mexican....the Dem. party is hurting, he's lost a lot of them to being Independents....He promotes GM as his success story, well they still owe the tax payer 30 billion..... this noble peace prize recipient brags about killing Osama,....he's increased the nation debt by 5 trillion in just 4 years, a new record ...I believe I heard one person say that he could of just given each person in the US 130 thousand dollars....and now since his wind mills and solar policies have failed, he's promoting natural gas, a little too late don't you think ??....I can go on and on about this goof balls... enough said and I'm out....

September 07 2012 at 11:02 PM Report abuse +3 rate up rate down Reply

Search Articles

Top Companies Hiring

Week of Oct 19 - 26
View All

Featured Writers

Meet the team

Picks From the Web