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No Workers Hired In August – Another First!

From a downcast (but discreet) Associated Press:

Employers add no net jobs in Aug.; rate unchanged

AP Economics Writer

Sep 2, 2011

WASHINGTON (AP) — Employers added no net workers last month and the unemployment rate was unchanged, a sign that many were nervous the U.S. economy could be at risk of slipping into another recession.

The Labor Department said Friday that total payrolls were unchanged in August, the weakest report in almost a year. It’s the first time since February 1945 that the government has reported a net job change of zero. The unemployment rate stayed at 9.1 percent.

A strike by 45,000 Verizon workers lowered the job totals. Those workers are back on the job.

If all of these workers are back on the job, how could they have lowered the monthly total?

Job gains in June and July were revised lower, to show 57,000 fewer jobs added.

So the employment numbers for the two previous months were revised down? Now, that is a shock.

The downward revisions were all in government jobs

Well, there is some good news, anyway.

The report may dampen expectations for the economy to pick up in the second half of the year…

Ya think?

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

13 Responses to “No Workers Hired In August – Another First!”

  1. Howard Roark says:

    Good thing the president is going to announce his jobs plan next week!

  2. Georgfelis says:

    What happens when *this* job report is lowered, just like all the rest have been since 2008?

  3. Petronius says:

    August economic report :

    • August was a rough month.

    • The Misery Index is at a 28-year high.

    • Wild swings in the stock markets and commodities. Bonds and gold surged.

    • The economy has been on thin ice, but now is edging lower.

    • Second quarter GDP growth was downscaled to 1% from 1.3% reported earlier.

    • Citigroup, JPMorgan Chase, and Morgan Stanley lowered forecasts for the economy, predicting growth of only 1.6% for 2011 and 2.1% next year.

    • Barclays Capital downgraded the US retail sector from neutral to negative.

    • Corporate earnings reports disappointed –– still good overall, but slipping.

    • The fear index (VIX) shot up. Global stocks lost over $6 trillion in value this month, then recovered. German stocks are down over 20%. US stocks were down 18% in the first half of the month. Investors grew risk adverse, looking for hidey-holes and scrambling into gold, silver, bonds, the Swiss franc and the yen.

    • The big drags on the US economy and markets have been, and continue to be: Nerobama and the Sandinistas in Congress, exploding Federal deficits, debt, and regulations, Eurozone sovereign debt woes, geopolitical tensions in the MidEast, housing, jobs, and manufacturing.

    • Consumer confidence plunged 10 points from July to 46.9% on 10 Aug, the lowest level since 1980. By 22 Aug it had fallen again to 45.5%. On 30 Aug it fell to 44.5, the sixth largest monthly decline in 21 years.

    • Homebuilder sentiment in August remains at historic lows.

    • There is a complete loss of business confidence. The big shadow of ObamaCare looms over US businesses — experimental and problematic, and its results cannot be predicted. American businesses don’t know where the government is going with its new policies.

    • Under these circumstances, there is no incentive for businesses to expand; instead, they are moving overseas and hoarding cash or buying back shares, afraid to invest since profits have become a naughty word in Washington.

    • Official unemployment 9.1%. When the long-term unemployed are counted, actual unemployment is 16%. When the underemployed are counted, it is about 20%.

    • So far this year banks have announced plans to cut more than 60,000 jobs. Bank of America will lay off 3,500 employees this quarter and up to 10,000 in total. UBS announced 3,500 layoffs. Over 14,000 (or 4.1%) brokers and investment advisers lost their jobs in 2010.

    • Drug companies also laid off more employees this summer. Medical device maker Boston Scientific announced it is laying off 1,400 workers and moving operations to China. Its American-made products would be subject to the medical devices tax imposed by Obamacare.

    • Over 47 million people on food stamps.

    • The Federal government sends out more than 100 million checks each month — about one for every household in America. We’re all on the dole now.

    • The ISM manufacturing index fell once again, from 55.3 in June to 50.9 in July, the lowest in two years.

    • The JPMorgan global manufacturing index also hit a two year low.

    • The Philly Fed manufacturing index showed a 34-point drop, reflecting a major loss in business confidence.

    • Real estate values have been destroyed. Home sales hit a seven months low.

    • Zillow reports that 28.4% of all homes with mortgages are underwater, compared to 27% last year.

    • Homeowners have stopped spending on renovations as housing prices fall and the economy shows no signs of recovery. Lowes reported weaker-than-expected sales and earnings, and lowered its outlook for the second time this year. Lowes announced a $5 billion buyback.

    • No black swan event. While England burned for four days and nights, America escaped three natural disasters: (1) the Mineral, VA earthquake, (2) the 5.5 magnitude earthquake at Cokedale, CO, and (3) Hurricane Irene –– but each is a reminder that America has saved nothing for a rainy day.

    • Oil at $89 bbl –– but may slip lower when Libyan production is restored. Qadafi is somehow being defeated by an unlikely combination of US/NATO air power and a bunch of civilians shooting guns into the air. (By the way, don’t they have gun control laws in Libya? And where can I go to have dual .50-cal. machine guns mounted onto the roof of my SUV?)

    • Elections have consequences. In three short years the United States has racked up a generation worth of debt for dubious benefit.

    • The national debt is now over $14.6 trillion. Since Nerobama took office it has grown by $4.25 trillion, a gain of 40% in under 3 years.

    • In the meantime the annual deficits have quintupled, currently over $1.3 trillion so far this year.

    • The deficit grows about $3 million each and every minute. http://latimesblogs.latimes.com/washington/2011/08/obama-national-debt.html

    • While Republicans sought to rein in spending to historic levels, Democrats fought to lock in Nerobama’s unprecedented growth in government as the new normal going forward.

    • Nerobama called for “the rich” to “pay their fair share.” Unmentioned is the fact that the rich in America already pay more than the rich in any other developed country. http://finance.fortune.cnn.com/2011/08/25/the-critical-facts-that-no-one-mentioned-in-the-debt-debate/?section=magazines_fortune&utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+rss%2Fmagazines_fortune+%28Fortune+Magazine%29

    • 1 Aug. Debt ceiling compromise increased Federal borrowing authority to $16 trillion.

    • 2 Aug. Gold leapt to record high, over $1660.

    • 2 Aug. David Farr, the CEO of Emerson Electric, announced that the company is starting to cut spending as a result of the slowing economy. He said that, in view of the “enormous regulations” being issued out of Washington, “The incentive to invest in the U.S. right now is negative.” Farr cited an environment of waning corporate confidence amid new government regulations, and described the US government as “dysfunctional” and unable to tackle excess debt and spending. “Washington is arranging the chairs on the Titanic the way I look at it.” He added, “I don’t know how much lower the consumer can go.” http://www.reuters.com/article/2011/08/02/emerson-farr-idUSN1E7711PW20110802

    • 4 Aug. Stock market meltdown. S&P 500 plunged 2.6%. Gold, Swiss francs, and the Japanese yen hitting record highs day after day.

    • 5 Aug. International stock markets collapsed in the biggest drop since 2008.

    • At Friday’s closing bell, S&P issued its long overdue downgrade of US public debt to AA+, the first downgrade of American debt in history. In addition, S&P said the outlook for US debt remains negative. http://www.standardandpoors.com/home/en/us

    • 8 Aug. Fear gripped the markets. Gold shot up over $50 to $1717 on Monday’s opening, the first trading day after the S&P downgrade. Stocks plunged worldwide. Banks and financials were particularly hard hit.

    • 9 Aug. In a break from Fed tradition, Bernanke promised a zero rate policy for two years, or at least until mid-2013.

    • Following the Fed’s announcement, the 10 year yield dropped straight down one full percentage point. At 2.04%, the yield is now below the rate of inflation, which is between about 2.5 to 12 percent, depending on whose figures you believe. http://www.shadowstats.com/

    • The current Fed rate of 0.25 is a negative real rate of return. As a result, savers — particularly seniors and retirees — are losing money on their bank deposits and money market accounts.

    • Bernanke’s bad news for savers was good news for gold, which spurred to new record highs. Negative or nominal interest rates are always bullish for gold. In effect, the Fed by its announcement has guaranteed to support the price of gold for two more years.

    • The Swiss franc rose to new highs against the US dollar and the euro. The Swiss central bank cut rates to the bone in an attempt to halt the rise of the franc.

    • Japan also intervened to halt the rise of the yen. Nissan announced it was reducing exports due to the negative impact from the rising yen.

    • In the last few years, the Fed has pumped $2.3 trillion into global financial markets through purchases of Treasuries, mortgage bonds, and government agency debt.

    • 10 Aug. Mass hysteria hits markets on speculation that France would be downgraded. Stocks fall. Gold over $1810. A new record.

    • Democrat Maxine Waters calls for a hearing on S&P’s downgrade by the House Financial Services Committee and urges the SEC to investigate S&P. The SEC launches an investigation.

    • China and Russia announced they would be reducing their exposure to US debt. Japan said they would keep lending.

    • Calls issued for an alternative to the US dollar as the world’s reserve currency.

    • Gold advanced to a record $1913.50 on 22 Aug. Gold set record highs in all currencies including Swiss francs, Japanese yen, British pounds, euros, and the lowly US dollar.

    • Central bank buying of gold quadrupled in the last quarter. Gold is supported by strong physical demand from China, India, and buyers elsewhere in Asia, by the eurozone debt crisis, by concerns over US public debt, deficits, and debasement of the dollar, and by negative real interest rates. None of these drivers are being mitigated.

    • Gold has become the currency of the world, as investors realize that governments in America and Europe are mishandling the debt crises. http://www.bloomberg.com/news/2011-08-19/gold-climbs-to-record-set-for-best-weekly-run-since-2007-on-haven-demand.html

    • 11 Aug. US companies have bought back over $305 billion of their own shares so far this year. Companies used their cash to buy back their own shares rather than investing in new operations or acquisitions or increasing their dividends. Buybacks are often a sign that companies see no good opportunities for expansion. It is a bad sign, suggesting a faltering economy and no jobs.

    • The EPA proposed regulations to cut greenhouse gas emissions — regulations that will sharply raise costs for electric utilities, oil refineries, and oil and gas drilling.

    • Two dozen environmental groups launched a series of legal challenges at the NRC to block permitting of new nuclear reactors for electric utilities, and to block relicensing of older reactors. Nuclear plants that were targeted are operated by Southern Company, Dominion Resources, Duke, Progress Energy, SCANA, Constellation Energy, DTE Energy, PG&E, NRG Energy, PPL, TVA, Entergy Corp., and others.

    • The USDA slashed its estimate of corn and soybean yields due to damage from the mid-summer heat wave and drought. This is bad news for the livestock industry and the ethanol industry, and is expected to add upward pressure to global food prices. Wheat, cotton, and smaller crops like barley, peppers, and melons were also hit.

    • 12 Aug. Nerobama began meeting with business leaders in an effort to cast himself as more of a centrist and to boost his chances for reelection. No policy changes came out of the meeting.

    • 12 Aug. The regime is cracking down hard on McGraw-Hill, parent of S&P, in retaliation for its downgrade of the government’s debt.

    • 12 Aug. At the closing bell, the S&P 500 index stands 50 points lower than it was at the beginning of 1999, over 12 years ago.

    • 18 Aug. Stocks collapsed over 4% and the DJIA closed down 420 points. The US 10-year bond yield slipped below 2% to a record low.

    • The German economy — the star of the West — grew only 0.1% in the 2d quarter.

    • Nerobama ordered a halt to deportations of illegal aliens.

    • Fannie Mae lost $2.9 billion in the quarter and requested $5.1 billion in government bailout, while Freddie Mac requested $1.5 billion. Together they have already cost taxpayers $170 billion.

    • The world population will rise to 7 billion this year with high birthrates in Africa offsetting birth rate drops elsewhere. The population in 1999 was 6 billion, with one billion people added in merely 12 years.

    • For the year corn is up 13%, coffee up 10%, heating oil up 13%, gasoline up 18%. Clothing prices are up 20%.

    • The US trade deficit rose 15%.

    • In Brooklyn vagrants in Prospect Park have been trapping and eating ducks, squirrels, and pigeons.

    • 26 Aug. Vice Pres. Joe Biden called for more stimulus. Gold jumped to $1830.

    • Nerobama appointed yet another new economic adviser.

    • sticks says:

      Petronius, is there any positive news? Never mind, I probably don’t want to know. Nerobama fiddles while the American economy is going up in flames. I can’t wait to hear what his magical jobs plan will be. I’m sure we will all be much comforted. Nerobama’s jobs plan, “I will send twenty dancing monkeys (members of congress) out to entertain the people.

    • Petronius says:

      sticks: “Is there any positive [economic] news?” Yes, indeed … it all depends on how you look at it :

      1. As the stock markets tumbled and the creditworthiness of the United States was downgraded, Nerobama celebrated his barefoot birthday bash, played golf, campaigned in three Midwestern swing States, collected donations, and romped through his vacation on Martha’s Vineyard. And as long as he’s whooping it up on holiday, he can’t be rogering us, right? So that’s good news.

      2. Retail sales of guns and ammo are booming. As Jim Cramer says, “there’s always a bull market somewhere.”

      3. The “birth tourism” business for immigrants is thriving.

      4. Bonds, gold, silver, and foreign currencies are strong.

      5. The stocks of many blue chip companies have been beaten down and are lying around on the ground like old fag ends waiting to be picked up. Most of these companies have balance sheets that would put the US Government to shame, and pay dividend yields well above the 30-year Treasury bonds.

      6. Corporate earnings are still pretty good. One reason corporations are making money is because they have cut their spending and payrolls to the bone. The trouble with this is that there is no fat left to cut if the economy slows down.

      7. There was no black swan. Damage from earthquakes and Hurricane Irene was limited. Otherwise, they might have given Nerobama the excuse he needs to shirk responsibility for the economy … as well as given him an opportunity to do all kinds of new mischief (“Never let a crisis go to waste”).

      8. Oil prices are coming down, and there is reason to hope they may come down a bit more.

      9. There is a reasonable chance that the economy grows 2% next year — and although that’s not much, these days we’ll jolly well take what we can get.

      10. Marc “Dr. Doom” Faber, the beloved Hong Kong-based investment manager, said “Financial conditions are today worse than they were prior to the crisis in 2008. The fiscal deficits have exploded and the political system has become completely dysfunctional.” Thought that last one would cheer you up.

    • sticks says:

      Thanks Petronius, I feel much better now, especially after that last one

    • proreason says:

      Good news? Sure there is good news.

      American business has, for the most part, awoken from it’s hypnotic trance and sees clearly that butt boy Obamy is the enemy. That’s why businesses are in high bunker dungeon mode and won’t spend a dime to expand until the rat is rooted out of his hole.

      Likewise for American consumers…the ones with earned income that is. We’re hunkered in our bunkers as well and we not going to contribute a dime to GDP to bail this marxist madman out until he’s back in his rat hole.

      We’re onto the scam.

      Admitting the problem is the first step to recovery.

  4. kennyg7 says:

    And to think that 40% of americans still aprove of BO. Also did you leave out Obama care?

  5. BigOil says:

    Don’t you see. We have a jobs crisis. President Prompter’s plan must be passed immediately so we don’t fall off the cliff. The country must be brought back from the brink of collapse – again.

    • BigOil says:

      Seriously, what company would even consider hiring anyone amidst a swarm of heavy-handed regulations (see Gibson Guitar) and Barrycare hanging over their head like the sword of Damocles.

  6. proreason says:

    I looked at the official employment stats yesterday and unemployment could easily go under 8% by Nov 2012, given the slimey way they measure it.

    If they are able to drive another million people out of the “workforce” and create 1 million jobs (an abysmal pace, since more than 2.5 million new workers come of age annually, none of whom are counted in the “workforce” until they get their first full-time job.), then unemployment will be under 8%.

    Since the Boy King began his campaign to destroy America, he has driven 1.2 million people out of the workforce (actually more like 4 million if new workers were counted), so it is entirely conceivable that he could force and / or tempt another 1 million to go on gubamint benfits rather than waste their time working. And 7 of the last 9 septembers had 1 million more jobs than the prior year (or very close to it), so 1 million new jobs isn’t much of a stretch at all.

    This is certainly what the Marxists “Job Plan” is intended to do. He will attempt to create 1 million jobs picking up trash on the side of the road (jobs that can be filled by layabouts who currently are on the dole), meanwhile keeping pressure on small businesses so that 1 million people become discouraged enough to stop looking for a job.

    That would be enough to get the moron re-elected unless the Republicans begin to explain how these stats work so the public can understand how the marxists’ policy creates discouraged workers and drives the unemployment percentage down.

    • BannedbytheTaliban says:

      All government numbers have been massaged in order to make the powers that be look better, unemployment, GDP, inflation, etc. What sane and rational person could believe an entire nation could add zero jobs and have no change in the unemployment figure.

  7. Tater Salad says:

    Barack Obama is a narcissistic, self centered ruler of America. He thinks he is above the law. How things have “changed” since his election days when he was telling us that war was bad, GWB was bad and destructive, didn’t have permission for this and that, transparency during the healtcare debate BS and now he is doing the exact thing. That my friends is a hypocrite, plain and simple. This self centered President and his agenda has hurt America at a time when it was “vunerable” and he has taken us to the lowest point of possible survival as a free nation.


    “Everything Obama does comes straight from the most stilted and destructive clichés of the left. The man has never had an original idea in his life, and wouldn’t recognize one if it were served up on a plate with arugula. He is intellectually locked in concrete.”

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