Zero jobs created in August
The jobs report for the month of August was released just a few minutes ago by the Bureau of Labor Statistics. The news isn’t encouraging:
The US economy created no jobs and the unemployment rate held steadily higher at 9.1 percent in August, fueling concerns that the US is heading for another recession.
It was the first time since World War II that the economy had a net zero jobs created for a month.
Economists had been expecting the report to show a net of 75,000 jobs created, an unusually low number considering the US is technically more than two years removed from the end of the last crisis.
Keep in mind that the employers need to produce around 130,000 jobs just to keep up with population growth, so even the estimates for this month were anemic. The silver lining is, as noted, the unemployment rate didn’t go up.
The report puts even more pressure on President Barack Obama to deliver a strong proposal to Congress to encourage job creation, especially after his stunt of trying to upstage the GOP presidential debate. Odd are, however, that he’ll resort to the same policies that have held the economy back.