Friday brings us to the favorite part of the month when we sigh and think: were the Bush years really that bad? Seriously, the August US unemployment rate was expected to increase to 9.5% from 9.4% in July and non farm payrolls are expected to have declined 230k. Data came out 9.7%, NFP -216k, but July was revised an additional -29 to -276.
From a low of 4.4% in October of 2006, the number of unemployed has soared to about 7 million in the United States. It’s one of the contributing factors for why President Obama is seeing his approval ratings sink.
The recovery is based primarily on inventory rebuilding and industrial order pickup with US exports accelerating. Factory orders and ISM manufacturing have shown improvement that leads me to believe they will resume hiring soon.
Unfortunately, the average non farm weekly hours was unchanged at 33.1.
The good news is that average hourly earnings increased 0.3% and this puts more money in the pockets of workers.
However, consumer spending is still lacking.
This is why there is consternation over the lack of job creation even with growth returning this quarter. It’s seen as either unsustainable or lackluster going forward.