Employment in the U.S. "unexpectedly" stagnated in August

[marmar]

(Bloomberg) Employment in the U.S. unexpectedly stagnated in August and the jobless rate held at 9.1 percent as American employers became less confident in the strength of the recovery.

Payrolls were unchanged last month, the weakest reading since September 2010, after an 85,000 gain in July that was less than initially estimated, Labor Department data showed today in Washington. The median forecast in a Bloomberg News survey called for a rise of 65,000. Hourly earnings and hours worked both declined. The August data included a 48,000 drop in information industry jobs, mostly reflecting striking Verizon Communications Inc. (VZ) workers.

The first U.S. credit downgrade, political squabbling over the budget and mounting fear of a default in Europe caused the Standard & Poor’s 500 Index to plummet 17 percent from July 22 to Aug. 8, prompting companies and consumers to cut back. The lack of hiring is one reason Federal Reserve Chairman Ben S. Bernanke last week said the central bank still has tools available to stimulate growth.

“Net employment flat-lined in August,” Ellen Zentner, a senior U.S. economist at Nomura Securities International Inc. in New York, who forecast a decline of 5,000, said before the report. “When the outlook is uncertain, businesses don’t hire. Calls that we’re on the cusp of a recession or already there are not completely unwarranted.” ...........(more)

The complete piece is at: http://www.bloomberg.com/news/2011-09-02/employment-in-u-s-unexpectedly-stagnated-in-august-jobless-rate-at-9-1-.html

[ixion]

1. these people who don't expect the expected need to be canned.

Seriously.

[wilt the stilt]

2. But I thought The "job creators"

would bequeath us jobs.

[Lindsay]

3. I'm thinking the "job creators"

are the same people as the expecters.

Epic. Fail.

[HereSince1628]

4. Really? Wasn't it this month that the dow fell from over 12 to under 11?

Analysts couldn't forsee a 10% drop in the market resulting in putting on the breaks for hiring?

Damn.

[valerief]

5. I guess they don't know about offshoring and employers being rewarded for it.

:eyes:

[dgibby]

6. Unexpected?

The Tea Party set out on a suicidal mission to destroy the economy by refusing to raise the debt ceiling, our credit rating dropped, Obama continues to think that he can reason with domestic terrorists hellbent on destroying his Presidency and the country, and job stagnation was unexpected? What planet are these people living on?

[golfguru]

7. Actually there was a loss of 84,000 jobs

When the "0" new jobs data came in this AM, it was adjusted with a fictious number called the "birth/death" model that purports to show the net creation of new businesses that were not surveyed in the BLS sweep.

The BLS added 84,000 hypothetical jobs to get to zero new jobs. Based on the data actually surveyed the report should have been -84000 jobs.
The birth/death model has been the subject of much suspicion by statisticians since the BLS can not show it has any historical validity.

[Lionessa]

8. It's amazing how those that are in the safe and secure top 10%

can't see what's right in front of them. Those of us in long term unemployment frustrations had no doubt, and instead doubt nearly any report showing otherwise over the past 3 years.

[golfguru]

9. Black unemployment highest in 27 years

http://money.cnn.com/2011/09/02/news/economy/black_unemployment_rate/index.htm?hpt=hp_t2

But the high end stores catering to rich are doing just fine. Neiman-Marcus, Bloomingdale, Tiffany, Saks 5th, Armani etc are still busy.