Job Numbers Disappoint, Unemployment Falls to 7.3%
Posted at 9:40 a.m. on Sept. 6
The Bureau of Labor Statistics reported that payroll employment in August grew by 169,000, just below expectations of 175,000, while the unemployment rate nudged down to 7.3% from 7.4%. The labor force participation rate continued its slow and steady decline,
down from 63.4% to 63.2%. The big numbers are revisions to the past two months. June payroll growth was revised down to 172,000 from 188,000 and July growth saw a dramatic decline from 162,000 to 104,000, totaling 74,000 fewer new jobs over the past two months.
Bill McBride points out that “the sharp decline in the participation rate helped lower the unemployment rate… With the revisions, this report was well below expectations.”
Matthew Yglesias: “One would hope that this will remind members of the Federal Reserve’s Open Market Committee that their months-long dance around the idea of reducing the pace of Quantitative Easing is nuts… Monetary policymakers need to stop looking for the exits and seizing on any random bits of good news as a reason for tighter policy. You need to keep easing until really bad news about inflation starts to loom larger than continuing bad news about jobs.”
Ezra Klein: The five worse things about this crummy jobs report.
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