Just when you think things are getting better in this economy and the stock market “takes off” as we accumulate a few months of triple digits job growth, it stalls! That’s exactly what happened last month with the latest number of jobs created netting zero! The number of people unemployed remains at 14 million or 9.1% of theU.S.population!
Happy Labor Day, right? It is the first time since WWII that our economy has had net zero job growth for a month. Economists were expecting at least 75,000 jobs created, which in itself, is an unusually low number considering it has been more than two years since theU.S.has technically been out of the last recession.
Private payrolls actually rose by 17,000, but this number was off set by the continued shrinkage in government jobs. It appears that we are not losing as many jobs, yet we are not adding them, either. This makes for avery slowjob recovery. The federal government has gone on record saying that they believe that the 9%-plus unemployment figure will remain through the end of 2012.
That’s not good news for the worker trying to get back into the job market. The unemployment rate that counts those not looking for work rose to 16.2%. The average duration of unemployment did edge a bit lower to 40.3 weeks from its record high of 40.4 weeks in July, yet the median time it takes to find a job has spiked from 21.2 weeks to 21.8 weeks.
Health care and mining sectors saw more jobs created this month. Telecommunications and government both posted substantial losses. The manufacturing sector lost 3,000, construction lost 5,000 jobs and retail lost 8,000. The average earnings slid 3 cents to $23.09 while weekly hours edged lower to 34.2. Unemployment of whites is at 8.9 percent, blacks at 16.7% and Hispanics at 11.3%.
President Obama is to deliver a speech to Congress next Thursday to outline his administration’s “job plan”. With our government having to stabilize our deficient, it is unlikely that Obama will get support for more borrowing for sweeping job programs.
There are no shortcuts in getting our economy moving forward. It will take time. The longer the government steps in to “prop” up our economy for political gain, the more we will all suffer.