Help WantedAmericans received some rare good news about the U.S. economy Friday, with a report from the Labor Department that the private sector added 67,000 jobs in August, more than the 40,000 gain economists had forecast. But that unexpected increase was more than offset by the well-anticipated drop in government payrolls: The number of temporary U.S. Census workers fell by 114,000, accounting for the bulk of a 121,000 decline in government jobs. In total, the U.S. lost 54,000 jobs in August.

And, if August was better than expected, June and July now appear to have been less bad than they previously appeared. Job loss totals were revised to 175,000 for July and 54,000 for June, down from the previously estimated 221,000 and 131,000 figures, respectively, which amounts to 123,000 fewer jobs lost than earlier reported.

The consensus of economists surveyed by Bloomberg had been that the economy would lose 90,000 jobs in August, primarily due to the loss of about 130,000 government jobs -- mostly those once-in-a-decade temporary Census jobs.

More People Are Looking for Work


The Labor Department report probably won't change the Federal Reserve's stance toward the economy. The Fed is still weighing whether to implement additional measures to stimulate an economy that's operating well below potential and that has created not nearly enough jobs for the estimated 22 million to 23 million Americans seeking full-time work. Fed Chairman Ben Bernanke has repeatedly underscored that the Fed has the tools to provide more stimulus and will act if conditions warrant it.



The unemployment rate rose in August by 0.1% to 9.6%, which reflects the fact that more people are looking for work: The workforce participation rate rose to 64.7% in August from 64.6% in July.

However, an alternate measure of unemployment, one that includes discouraged workers no longer actively seeking jobs and part-time workers who want full-time jobs, increased to 16.7% in August from 16.5% in July.

Average hourly earnings increased 6 cents to $22.66 per hour. The average workweek was unchanged at 34.2 hours. A 0.1 hour increase in the workweek generally adds about 100,000 jobs to the economy.

Job Totals By Sector


In August, the health care sector added 28,000 jobs; construction added 19,000 jobs; motor vehicle parts and dealers added 8,000 jobs; and mining added 8,000. Temporary services in the private sector -- not to be confused with temporary Census jobs -- added 17,000 jobs.

On the downside, the manufacturing sector -- which previously has been a leading job creator during the recovery -- lost 27,000 jobs. Building materials and garden-supply stores lost 6,000 jobs.

Despite the private sector additions, the overall state of the U.S. labor market is still weak. The economy isn't creating the roughly 150,000 to 200,000 jobs per month that it needs to reduce unemployment and help the recovery become self-sustaining.

High Unemployment: No Minor Matter In U.S.

Prolonged periods of job losses and/or high unemployment represent a problem for any developed economy, but they're particularly painful -- and can reach the status of a crisis -- in the U.S. That's because America's social safety net is modest and limited compared to those of eurozone states, which results in much larger economic losses for domestic unemployed and their families during periods of joblessness. If you're not a person of wealth or otherwise supported by someone else, a job isn't an option in the U.S., it's a necessity.

That's one major reason the prolonged period of inadequate job growth has led to so many negative economic outcomes and conditions in the U.S.: The American system isn't designed to have such a high percentage of its working-age population unemployed. The social supports simply don't exist to allow the nation to run normally amid high unemployment. The U.S. economy can't grow adequately while unemployment remains high and jobs short, and it certainly can't achieve the robust corporate and revenue growth results characteristic of much of the post-Cold War era.

That's why -- whether by public investment or private capital deployment, or both -- the country needs to discover ways to create lots of jobs in the quarters and years ahead. The American economic system quite simply can't do without them.

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cbeetom

9.6% IS THE FEDS ESTIMATE. YOU KNOW HOW THEY LIE. IT IS CLOSER TO 20% IN THE REAL WORLD.

September 05 2010 at 6:17 PM Report abuse -1 rate up rate down Reply
jagcapt007

When will you sheep get it right? It doesnt matter which party has the purse strings. Our excess labor (money) will be confiscated and funneled to the top. Capitalism and the corporatists have control of both parties.===============================Let us recap this month. Our ELITE DNC lead Congress gave 26 billion dollars to teachers, and civil service Unions, but sadly only created 67,000 private sector jobs to pay it back. Our only hope is those private sector jobs are mega millionaire CEO jobs, otherwise We the People lost hugh ground in job creation again. This is not a path to recovery but rather a rush to Genocide, unless one is either a union employee, US Senator, illegal immigrant, or entitlement recipient. Mr. President Many of my most liberal economic professors "who adore you" publicly stated this is NOT a recovery. We the middle class taxpayer have been raped once again. Demand the US Senate surrender this year's 85 Million dollar profit, they received, to we the people's general fund. Next we investigate how these poor Tax paid Unions gave 76 million dollars to US Senate candidates, as possible quid pro quo bailout money or kickback? This Senate investigation instantly restores public confidence and magnanimously improved consumer spending. FDR would do it and it cost us nothing........ All together now. ...YES WE CAN ....but some felonious backdoor stealing Senators maybe shouldn't have. Now enlighten this humble simple man. Which corporation wanted this insanity? Does DNC really mean Disastrous Narcissist in Charge corporation?

September 05 2010 at 2:22 PM Report abuse -1 rate up rate down Reply
Susie

When Democrats controlled congress for 40 years.........our economy and our values were admired and respected around the world.

September 05 2010 at 12:16 PM Report abuse rate up rate down Reply
1 reply to Susie's comment
otterdad48

How old are you?

September 05 2010 at 12:28 PM Report abuse rate up rate down Reply
actionhero

We were wondering when he'd get around to it. 18 months of healthcare, G.M., Nuclear disarmament, Peace prizes, and muslim heritage. Did I mention healthcare? Yep, the chickens have come home to roost.

September 05 2010 at 12:14 PM Report abuse +2 rate up rate down Reply
actionhero

obama threw money at the problem and chose to spend his time on other issues. Health care, nuclear disarmament, and embracing the muslim world was more important. His economic strategy consists of blaming Bush and talk about car keys. Thats it! Yep, the chickens have come home to roost.

September 05 2010 at 12:08 PM Report abuse +1 rate up rate down Reply
jagcapt007

Charlie did you notice last year that black crippled professor that stumbled at the Obama beer feast. Did you notice that only that white raciest cop assisted him on the steps. Not Obama, Not Biden, only that stupid cop. That charlie was true compassion and leadership. I am disgusted at talking points liberals that insist others need to do it. I am tired of raciest that talk about others ignorance and lack of compassion, but are truly impudent in their own mind of character and true leadership. Obama like many elites, doesn't want to get their hands dirty to help others, even if crippled. He only wants to be the supervisor, talking notes, and give occasional directions. I need a government of leadership, and not just chartable fundraiser and community organizations. I need a government that will say no, and go back to your neighbors and local community for guidance and help. True leadership is teaching others how to do for themselves, and setting standards by examples, and NEVER becoming their savior for every problem or failure. I am so proud of my employees with how quickly they mobilized, and took charge of my small act of assistance to help their missing co-workers, and push it beyond my minimum standards. As I sat in my office fighting a lump in my throat I realized, I am a good businessman, but truly I am blessed in my leadership. I need to go and call my parents and thank mom for her insufferable patience with me on "minimal standards of character". Oddly i just realized it now.

September 05 2010 at 11:58 AM Report abuse +2 rate up rate down Reply
Dismayed

Keep your eyes on the prize: Throw the bums out! Absolute power corrupts absolutely. Presently, there are too many dim dems in DC. Reduce your tax footprint, save your money, turn off the Big Government spigot running on your hard work and sweat.

September 05 2010 at 11:54 AM Report abuse +1 rate up rate down Reply
pete

Oh goody. Let's all get excited! How the hell does "More Jobs Added Than Expected in August" balance out yesterday's reports that unemployment increased .1% to 9.6%???? This administration has been playing fast and loose with numbers and using smoke and mirrors accounting practices. Tim Geithner said on Good Morning America "It's possible you're going to have a couple months where unemployment goes up because, you know, people start to come back into the labor force. When they see a little hope that there may be jobs out there, they start to come back in again. And they can cause the measured unemployment rate to go up -- temporarily." What he is really saying is "We've stopped counting millions of unemployed whose benefits have expired. Every time we extend benefits, they come back and re-register, so naturally the numbers go up." What that tells me is that this administration and the media are purposely under reporting unemployment. During the Bush years the media ALWAYS reported the Labor Departments "U-6" data class numbers, defined as including "short-term discouraged" workers, in addition to the "U-3" class, "still looking and drawing benefits" workers. Under obama only the U-3 numbers are reported by the media. When considering the history of new claims vs. claims that have run out over the last 3 years, the U-6 class is around 16.5%. Then there's the "long-term discouraged," those MIA workers who are being totally ignored by this administration. DailyFinance.com reports that June polling found that 27.8% of households have at least one member who is unemployed and looking for work, which translates to an actual unemployment rate of more than 22%. The GREAT DEPRESSION was 25%! Sorry about the long post, but some things just can't be addressed in 750 words or less. Just look at our own Congress, which more often than not, submits a bill of 2,000 pages or more.

September 05 2010 at 11:52 AM Report abuse +1 rate up rate down Reply
jagcapt007

Why are we more divided than any time in History? I don't expect miracles, and I am more than willing to suffer and do more than my fair share to help others, but enough is enough. In our WORSE DEPRESSION in history (his words) his wife is off on a luxury vacation in Spain with his kids? Would Bush do that????.... Sorry Charlie, but you are a fool. Like most independents...I have had ENOUGH of Obama and the DNC. I need some sanity and leadership in my Government. 60% of my workforce donated a weeks vacation money after I did, to give to our terminated employees. We also agreed that everyone has to receive $1000 this Christmas, and everyone will give a days overtime a month until Christmas to reach that goal. My European Vacation money went to a food bank because there shelves are empty and demand has skyrocketed "from illegals". I must be loosing my mind. That violates every principal I value, but people need to eat, and I am losing sleep. Footnote I didn't vote for Bush either, but this election is GOP across the line. I expect more for $174,000 a year. Our founding fathers got $6.00 per day and only while in session. Ben Franklyn wanted no one paid, sadly he lost.

September 05 2010 at 11:50 AM Report abuse +1 rate up rate down Reply
rtutbucks

THE DEMOCRATS HAVE BEEN RUNING CONGRESS FOR THE LAST 4 YEARS AND ALL WE HEARD OUT OF THEM IS HOW ROTTEN THE OIL COMPANIES ARE, HOW ROTTEN THE INSURANCE COMPANIES ARE, HOW ROTTEN THE DRUG COMPANIES ARE, HOW ROTTEN THE BANKS AND WALL STREET ARE AND ON AND ON AND ON. NOW ALL THESE COMPANIES HAVE LAID OFF PEOPLE WHO WERE MAKING GOOD MONEY AND THEY WONDER WHY THE ECONOMY IS IN THE TANK. THESE LIBERALS ARE FOOLS BUT THE PEOPLE WHO VOTE FOR THEM ARE BIGGER FOOLS.

September 05 2010 at 11:50 AM Report abuse -1 rate up rate down Reply