The Labor Department reports the U.S. economy added 169,000 jobs in August, missing economists’ expectations of 180,000. The jobless rate fell to 7.3%, the lowest since December 2008, and less than estimates that it would hold steady at 7.4%.
The reason for the drop in the unemployment rate? The labor force participation rate, which gauges the proportion of population in the labor force, fell to 63.2% from 63.4% in July, the lowest since August 1978. The employment- population ratio, at 58.6 percent, or the actual percentage of able-people with jobs was pathetic.
July’s job gains were just 104,000, the fewest in more than a year and down from the previous estimate of 162,000.
Employers have added an average of 148,000 jobs in the past three months, well below the 12-month average of 184,000. Over the last 7 months, 70% of all jobs created in the U.S. economy have been part-time jobs, most of which in the service sector.
The middle-class economy continues to struggle. Within manufacturing, employment in motor vehicles and parts rose by 19,000 in August, after declining by 10,000 in July. However, auto manufacturers laid off more workers for model changeover in July than in recent years. The return of laid-off workers accounts for the increase in August, not sector strength. Over the past 12 months, auto manufacturers have added just 34,000 jobs, in total.
It seems there are still growth indicators in the sector of the economy that offers part-time work for low-skilled people to serve rich people. Within leisure and hospitality, employment in food services and drinking places continued to trend up in August (+21,000). Over the year, food services and drinking places has added 354,000 jobs.
Yesterday’s round of mixed economic data could have helped to predict much in the report. One thing is for certain, the poverty study conducted by Oxford and released by the Associated Press last month is conclusive. Redistributionist policies are serving only to redistribute suffering among the working-class and middle America. I would encourage you to read the article, which you can view here.
The government can continue to fudge the numbers in the BLS report, or change how they calculate GDP without reason to make it appear as if the economy is actually growing, but it is plainly seen everyday. The only question is whether or not America will one day forget just how prosperous its people were.
You can read the entire BLS report below, but I warn you, if you are a liberal it just may hurt your ability to blissfully live in an alternate reality.