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Hiring Cools, Yet Unemployment Rate Falls

From ABC News:

August Jobs Report: Unemployment Falls to 8.1 Percent

By SUSANNA KIM | Friday Sept 7, 2012

American employers added 96,000 jobs in August, the Labor Department reported Friday. The unemployment rate fell to 8.1 percent as the economy slogged along for the 43nd [sic] month in a row with joblessness above 8 percent.

Economists expected an addition of 125,000 total nonfarm jobs in August, which would leave the unemployment rate unchanged at 8.3 percent.

Reflect on that for a moment. Economists had predicted 25% more hiring, which they said would leave the jobless rate at 8.3%. But even though the hiring was 50% less than their predictions the jobless rate went down…

Tell me there isn’t some fancy figuring going on.

And we have this from the Associated Press:

US economy adds 96K jobs, rate falls to 8.1 pct.

By CHRISTOPHER S RUGABER | Friday Sept 7, 2012

(AP) WASHINGTON – U.S. employers added 96,000 jobs last month, a weak figure that could slow any momentum President Barack Obama hoped to gain from his speech to the Democratic National Convention.

Who cares about how people are suffering because they can’t find work? This news is going to cut into the bounce the media expected Obama to get from his speech.

The unemployment rate fell to 8.1 percent from 8.3 percent in July, the Labor Department said Friday. But that was only because more people gave up looking for work.

The government also said 41,000 fewer jobs were created in July and June than first estimated. The economy has added just 139,000 jobs a month since the beginning of the year, below 2011’s average of 153,000.

Dow Jones industrial futures, which had been up before the report, fell soon after it was released…

That’s okay. Only rich people who have money in the stock market.

Tepid hiring could nudge the Federal Reserve to announce some new action to boost growth after its meeting next week.

The news media have been pushing for another round of quantitative easing for months. (See below.)

All told, the proportion of the population that is either working or looking for work fell to 63.5 percent. That’s the lowest level in 31 years for the labor force participation rate.

Average hourly wages dipped a penny to $23.52 and are only slightly ahead of inflation in the past year…

Many of the jobs were in lower-paying industries such as retail, which added 6,100 jobs, and hotels, restaurants and other leisure industries, which gained 34,000. Higher-paying manufacturing jobs fell by 15,000, the most in two years.

Even the AP is starting to sound discouraged. Though they are still trying to confuse the ‘low information voter’ with their misleading headlines.

Meanwhile, the push for yet another round of ‘quantitative easing’ continues, via Reuters:

Jobs growth cools in August, seen forcing Fed’s hand

By Lucia Mutikani | Friday Sept 7, 2012

WASHINGTON (Reuters) – Jobs growth slowed sharply 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…

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…

You have to save Mr. Obama’s re-election Ben Bernanke!

The jobless rate peaked at 10 percent in October 2009 —

Which is months after the recession officially ended.

[B]ut 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…

Because it is all about getting Obama re-elected. And the country be damned.

This article was posted by Steve on Friday, September 7th, 2012. Comments are currently closed.

2 Responses to “Hiring Cools, Yet Unemployment Rate Falls”

  1. Reality Bytes says:

    “Did you ever go to school, stupid?” “Yes, and I came out the same way.”

    Allow Lanny Davis (aka Lou Costello) explain it.


    • JohnMG says:

      Even Jay Carney could understand it when explained that way. It also explains Geithner’s tax returns.

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