Job Creation Grinds To A Halt In August

The jobs picture isn't getting any brighter. The U.S. Labor Department reports the nation's unemployment rate was 9.1 percent in August.

To make matters worse, the economy produced no new jobs in August. Economist Joel Naroff, of Naroff Economic Advisors, in Holland, Pa., calls that “disturbing.”

“There is no other way to describe the August employment report,” Naroff said. “The economy added exactly zero jobs over the month the first time that precise number has occurred since World War II.”

Worse still, the totals for both June and July were revised downward sharply. Naroff said if August is also downgraded, we could see a negative job growth number.

Distressing details

“The details were as distressing as the headline number,” Naroff said. “You have to back out the roughly 45,000 Verizon strikers who didn't appear on the payrolls. They are back and will boost the September job number but even if they were working, the gain would have been disappointing.”

Except for health care, few areas posted job increases. The bell weather retail sector cut its workforce. There were hardly any temporary help workers added, another sign that businesses remain cautious.

But balancing out the horrible job creation numbers, were were actually a few positive signs.

 A few positives

“More people were employed, the labor force increased sharply, the percentage of people in the labor force and the share of the population having jobs both were up and the number of people who want work but are not in the labor market declined,” Naroff said. “Those are normally signs of an improving labor market.

The number of people who couldn't find full time work, however, increased.

President Obama plans to address the jobs issue next week with an address to Congress.