Home Uncategorized A Very Good Analysis of the August Employment Report

A Very Good Analysis of the August Employment Report

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– Nonfarm payrolls increased by only 96,000 in August, the Labor Department said, versus expectations of 125,000 jobs or more. The manufacturing sector, much touted by the president in his convention speech, lost 15,000 jobs.

– Since the start of the year, job growth has averaged 139,000 per month vs. an average monthly gain of 153,000 in 2011.

– As the chart at the top shows, the unemployment rate remains far above the rate predicted by Team Obama if Congress passed the stimulus. (This is the Romer-Bernstein chart.)

Excerpts:

– While the unemployment rate dropped to 8.1% from 8.3% in July, it was due to a big drop in the labor force participation rate (the share of Americans with a job or looking for one). If fewer Americans hadn’t given up looking for work, the unemployment rate would have risen.

– Reuters notes that the participation rate is now at its lowest level since September 1981.

– If the labor force participation rate was the same as when Obama took office in January 2009, the unemployment rate would be 11.2%.

– If the participation rate had just stayed the same as last month, the unemployment rate would be 8.4%.

– The Labor Department also said that 41,000 fewer jobs were created in June and July than previously reported. The change in total nonfarm payroll employment for June was revised from 64,000 to 45,000, and the change for July was revised from 163,000 to 141,000.

– The broader U-6 unemployment rate, which includes part-time workers who want full-time work, is at 14.7%.

– The employment-population ratio is perhaps the broadest measure of the health of the labor market. It just shows how many Americans — not in the military or in prison — as a share of the population actually have some sort of a job. That number fell last month to 58.3%, just off its Great Recession lows.

– 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.

– In August, average hourly earnings for all employees on private nonfarm payrolls edged down by 1 cent to $23.52. Over the past 12 months, average hourly earnings rose by just 1.7 percent.

– In August, average hourly earnings of private-sector production and nonsupervisory employees edged down by 1 cent to $19.75.

Again, a terribly anemic report that shows a stagnant economy — not one ready to boom.

Very good charts and graphs to show data on link.

Link:

http://www.aei-ideas.org/2012/09/the-awful-awful-august-jobs-report/

10 COMMENTS

  1. GO OBAMA…. At least he doesn’t out source jobs and hide his money in foreign banks so he doesn’t have to pay United States taxes on it like Rommey!!! Hell, this guy even try to fabricate his time in a marathon. Makes you wonder what else he would lie about to make him look better. Rommey, what a joke.

    • Do you take drugs or does Obama keep you intoxicated with his uplifting speeches. You should worry less about Rommey’s (as you call him) money and get out there and make some of your own.

      Speaking of lies, did you see that the AP called your God Obama out for lying like a teenager in the back seat of a car in his speech last night.

      • No, I don’t take drugs. But if Romney gets elected I’ll probably have to sell drugs because this will be the only job left. The rest of the jobs will be out source to another country. And for your information I have work and pay my taxes all my life and I am not afraid of showing my tax return unlike somebody who wants to be President!!!

        • You’re one of those paranoid haters of success. If you were to learn that Romney paid only 15% for the last 20 years while making over a million a year would you consider voting for him? My guess is no which is precisely why he has no reason to release them.

          Obama has presided over the elimination of millions of jobs and has actually inspired millions of people to just give up. If you like the rotten economy we have now go ahead and vote for Obama because things will keep getting worse under his reign.

    • I have no choice but believe anyone who thinks this way has to be either missing a chromosome or under the influence of a hallucinogen.

      Mitt Romney was the originator of State-run healthcare in the State in which he was governor.

      He is for all the wars, including new wars in Iran and Syria.

      He supported the TARP bailout.

      He has only recently said anything in favor of a Federal Reserve audit. Before it became politically inexpedient, he defended the Fed.

      He, like Obama, supports the Patriot Act.

      He is for indefinite detention without trial of even Americans.

      His top campaign contributors read like a who’s who of who got bailout money. This guy is in the pocket of the bankers.

      Romney’s Top Contributors:
      http://www.opensecrets.org/pres12/contrib.php?id=N00000286

      • People like you will keep Obama in the White House. The enemy of the good is the perfect. There ain’t no perfection possible. If you like what Obama is doing then go on and vote for someone other than Romney cause a vote against Romney is a vote for Obama.

        • I’m convinced the only wasted vote is one in which you didn’t satisfy your conscience. I cannot with a clear conscience vote for a guy who voted for friggin bailouts. Call ME crazy. I don’t see the point.

          • Come on Brad you are smarter than that. Surely you do not really mean you would rather have Obama for another 4 years. Did you bump your head?

          • For me, I would feel that I had wasted a vote if Obama was reelected. I am not voting against Obama but against the direction he is taking us, and I do not see Romney taking us that same direction. In principle, I feel you pain brother, but that won’t change in 60 days. We need to live to fight another day, but if Obama is reelected, then I am not sure we will.

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