Unemployment Up, But Jobs Report Beats Expectations
The national unemployment rate rose to 9.6% and the economy lost 54K jobs, according to Bureau of Labor Statistics data released early Friday.
Those numbers beat expectations. Unemployment rose from 9.5% in July, but most economic analysts expected job losses to be higher.
The BLS also revised previous reports to reflect a more positive environment in June and July. The economy shed 175K jobs in June, down from the earlier estimate of 221K jobs, and 54K jobs in July, down from the initial 131K estimate.
Job losses in Aug. came largely from the Census Bureau, which laid off more than 100K workers. All told, the Census peaked in May when it employed 564K workers. By Aug., the bureau had just 82K staff.
The private sector continued to gain jobs, adding 67K to their payrolls. Those gains were largely fueled by boosts in the construction and service industries. But auto manufacturers shed more than 20K jobs last month, the report showed.
Even though it wasn't as bad as some were anticipating, the Aug. report paints a bleak picture politically for Dems. With just two months until Election Day, Friday's report is the final nail in an already-secure coffin that proves the economy will not recover before voters head to the polls.
It also show illustrates the challenge facing Dems, who are looking for ways to stave off a GOP wave this year. Politically, it is untenable for Dems to pass another stimulus package that his heavy on government spending and would, therefore, increase the federal deficit. Reports surfaced last night that the WH is considering new measures, including extending a researchand development tax credit and extending the Bush tax cuts for the middle class.