Published on Real-World Economics Review Blog, by Dean Baker, September 3, 2011.
The Labor Department reported that there was no growth in jobs in August, while it revised down its job growth numbers for the prior two months by 58,000. Job growth over the last three months has now averaged 35,000, well below the 90,000 needed to keep pace with the growth of the labor force. The Verizon strike reduced the number of jobs reported in August by 45,000. Adjusting for this factor, job growth would have averaged 50,000 over the last three months … //
… One item worth noting is the continuing decline in the unemployment rate for workers in the construction and manufacturing industries. The former is down to 13.5 percent from 17.0 percent a year ago, and the latter is now 8.9 percent, slightly below the overall unemployment rate. This trend undermines the argument that any substantial portion of the rise in unemployment is structural. Together these sectors increase overall unemployment by less than 0.2 percentage points.
Adjusting for the Verizon strike and seasonal peculiarities, this report shows an economy that is growing, but at a very slow pace. It is not even creating sufficient jobs to keep pace with the growth of the labor force. It is difficult to see how this will change absent a boost from the government. (full text).
Zero Job Growth In August, as Unemployment Rate Remains Stable, on CEPR, Sept. 2, 2011;
Libya’s next fight: Overcoming Western designs, on Intrepid Report, by Ramzy Baroud, September 2, 2011;
The last whistleblower–a story, on Intrepid Report, by Paul Craig Roberts, September 2, 2011.