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AP: Jobs Report Could Show Modest Growth

From those relentless purveyors of sunshine at the Associated Press:

Jobs report could show signs of modest growth

September 2, 2011

WASHINGTON (AP) — Businesses likely shrugged off recession fears and kept hiring in August, although not nearly enough to lower the unemployment rate.

Analysts forecast that the economy added 93,000 jobs last month, down from 117,000 in July. The unemployment rate is expected to stay at 9.1 percent, according to a survey by Factset.

Only in the land of the Associated Press does the unemployment rate staying the same represent "signs of modest growth." (Though we only see this kind of optimism when a Democrat is in the White House.)

The government’s monthly jobs report will be released Friday.

Which means it will come out just a few hours after this article. Which makes one wonder why the AP bothers to stick their necks out like this. Unless it is just meant to be a sign of their faith in Mr. Obama’s administration.

The projected job totals for August are barely enough to keep up with population growth. The economy needs to add closer to 250,000 jobs per month to rapidly bring down the unemployment rate, which has been above 9 percent in all but two months since May 2009.

Weak growth, a downgrade of long-term U.S. debt and a sell-off on Wall Street likely kept some businesses from hiring.

But notice that business were not kept from hiring by excessive regulations, or high taxes and the fear of even higher taxes, or Obama-care. As always, the White House is blameless. (Unless there is a Republican residing there.)

And a strike at Verizon Communications Inc. last month is also expected to lower the job totals. As many as 45,000 Verizon employees were off the payrolls for about two weeks. Those employees are back at work

If the Verizon workers are back at work, how will they lower the job totals? But the AP is so desperate to make excuses for the administration they will clutch at any straw.

Meanwhile, fewer people applied for unemployment benefits last week, a sign that layoffs have eased a bit

As we noted yesterday, this is misleading since unemployment claims spiked over the last two weeks because of the aforementioned Verizon strike. However, last week’s number was still higher than the number from three weeks ago, before the strike.

All that delivered a sense of relief that the economy is still expanding — even if it’s not enough to reduce the unemployment rate, raise wages and drive the housing market out of its depression

Still, there is no denying that happy days are here again and prosperity is just around the corner.

This article was posted by Steve on Friday, September 2nd, 2011. Comments are currently closed.

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