US Added Just 96,000 Jobs In August, Far Less Than Expected; Unemployment Rate Slides To 8.1%

In August, two months ahead of the presidential election ahead of which this number will be one of the most critical and talked about, the US generated just 96,000 non-farm payroll jobs, on expectations of 130K additions, and compared to the July number of 163,000, now revised to 143,000K. Private payrolls rose by a modest 103,000, much lower than the expected number of 142K, and down from July's revised 162K. -15,000 manufacturing jobs were lost, compared to the expected +10K, and sadly just a little bit short of Obama's recent promise to add 1 million manufacturing jobs by 2016. Finally, while the unemployment rate came lower (surprise, surprise: this is what appears in newspapers) at 8.1%, far lower than expectations of 8.3%, and below last month's 8.3%, the broad total underemployment rate (U-6) continues to be sticky at 14.7%. Birth Death added 87,000, up from July's 52,000. The reason for the drop in the unemployment rate: labor force participation dropped to 63.5%, down from 63.7%. Oddly enough, this report leaves the NEW QE door open, even as Obama can take the accolade for a declining unemployment rate. Win-win for everyone.

From the report:

Total nonfarm payroll employment rose by 96,000 in August. Since the beginning of this year, employment growth has averaged 139,000 per month, compared with an average  monthly gain of 153,000 in 2011. In August, employment rose in food services and drinking places, in professional and technical services, and in health care.

Employment in food services and drinking places increased by 28,000 in August and by 298,000 over the past 12 months.

Employment in professional and technical services rose in August (+27,000). Job gains occurred in computer systems design and related services (+11,000) and management and technical consulting services (+9,000).

Health care employment rose by 17,000 in August. Ambulatory health care services and hospitals added 14,000 and 6,000 jobs, respectively. From June through August, job  growth in health care averaged 15,000 per month, compared with an average monthly gain of 28,000 in the prior 12 months.

Utilities employment increased in August (+9,000). The increase reflects the return of utility workers who were off payrolls in July due to a labor-management dispute.

Within financial activities, finance and insurance added 11,000 jobs in August. Employment in wholesale trade continued to trend up. Employment in temporary help services changed little over the month and has shown little movement, on net, since February.

Manufacturing employment edged down in August (-15,000). A decline in motor vehicles and parts (-8,000) partially offset a gain in July. Auto manufacturers laid off fewer workers for factory retooling than usual in July, and fewer workers than usual were recalled in August.

Employment in other major industries, including mining and logging, construction, retail trade, transportation and warehousing, information, and government, showed little change over the month.

The average workweek for all employees on private nonfarm payrolls was unchanged at 34.4 hours in August. The manufacturing workweek declined by 0.2 hour to 40.5 hours, and factory overtime was unchanged at 3.2 hours. The average workweek for production and nonsupervisory employees on private nonfarm payrolls was unchanged at 33.7 hours. (See tables B-2 and B-7.)

Comments

[kevinearick]

so, a labor super is primarily concerned with demographics, the distillation of talent. everything else is a downstream symptom. on a big capital job, the capital super seeks to complete the job as efficiently as possible, by marginalizing labor as an abundant robot commodity. if you step out pf the way...you get Boston, CA, etc

having worked for 7 trade unions...

wasn't it just yesterday that Cat ceo was talking about an economic bull whip based on china, Fedex ceo was claiming small business was just a marginal driver in a monetized global economy, and Boeing ceo said the wings of the economy flew on gdp...

back when the operating engineers was a real union, when the BAs actually managed automation as a benefit...so, i'm walking with the ba, shooting the bull as we pass the bull dozer, he suddenly turns, grabs the operator by the collar, and throws him into the dirt...

take care of your own, and leave capital to destroy itself...

[Dan Conway]

I agree.  There will be no QE just a lot of blabbering about more QE.  Think Europe:  all talk no action.  The strategy works for a while. 

[anyways]

For me it is obvious, the FED will NOT do anything! Reasons:

1. Jobless rate dropped, who cares why. What's flashing is 8,3 to 8,1

2. President election. No way, the FED will do anything before that

3.  Stock markets at multiyear high. No comments needed

So, forget QE3 or anything else from the FED. It's impossible for them to argue that.

[Nobody For President]

So what happens next month when the 96K gets revised downward?

[Shizzmoney]

Broad total underemployment rate (U-6) continues to be sticky at 14.7%.

This is what I mean.  I know that the Preisdental speeches on both sides have about 0.5% of Romney's and Obama's input in it.....but can we just DISCUSS this number in the public?  Can you even, you know, fucking address what this number is, and how it actually relates to the employment situation? Instead of just these vapid missives filled with big, shiny words of "positive" propgnostication of how there way will make *my* life better (when, the only person who can really control this should be myself, not some corporate bureaucrat)?

That's what pisses me off.  Not these guys political stances on the issues, not the lobbyists and corporations bankrolling their campaigns and dominating their platforms (well, it pisses me off but there really is nothing you can do about it, minus GUNS)........but it just the CONSTANT IGNORING of issues, the CONSTANT pandering to the voting public. 

The "All is well" or "All WILL be well" syndrome.  It's not sustainable.  Humpty Dumpty WILL fall off that wall.

[Kayman]

Humpty has fallen off the wall. Our dear Leaders are figuring out what to put in the omlette.

[Snakeeyes]

And the number of people going on disability is still higher than declines in unemployment.

http://confoundedinterest.wordpress.com/2012/09/07/economy-adds-only-96000-workers-people-going-on-disability-greater-than-decline-in-unemployment-since-june-2010/

[Money 4 Nothing]

Use the U6 index and add 2% and you will be allot more accurate. Or, go to the States map of Unemployment % and divide it by 57. lol!

[Colonel Klink]

WHERE'S MY GOD DAMNED COOK BOOK?!?!  I just burned the damn NFP numbers!

-DOL

Nevermind, I'll just revise them later so no one will notice.