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Disaster! Only 96,000 Jobs Added in August

by Keith Koffler on September 7, 2012, 8:36 am

Forget last night’s speech. Forget Clinton’s speech. Forget Romney’s speech. This is what could decide the election.

The economy added only 96,000 jobs in August, the Labor Department just announced, well below the 150,000 or so needed just to keep pace with growth in the work force. Unemployment declined from 8.3 percent to 8.1 percent, but that’s only because people are giving up searching for jobs and leaving the workforce. Since they’re no longer counted, the percent of unemployed declined.

Obama meets with his top economic adviser

This is very, very bad news for President Obama. It may even explain why he seemed kind of flat during portions of Thursday night’s speech, since I understand he knew the numbers at the time.

I assure you, there are blisters on people’s hands at Romney campaign headquarters in Boston from all the high fiving going on.

This will be very hard to the White House to explain. Built on previous bad numbers, it’s clear that the Obama prescription for the economy is not working and the “more of the same” Obama campaign argument is going to ring hollow.

And this point, the “Oh, we got dealt such a bad hand” argument ain’t much better than “The dog ate my homework.”

This is not progress. When you create less jobs than you need, it’s effectively jobs losses.

What’s more, the last few months’ numbers were revised downward. The economy added 141,000 jobs in July compared to the initial report of 163,000, and the lousy June report of 64,000 jobs was cut to 45,000.

And, whoops, manufacturers shed 15,000 jobs, the biggest loss in two years, with more than half the pink slips being handed out in the auto sector.

CORRECTION: An earlier version of the article said there would be one more jobs report before Election Day. There will be two.

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{ 41 comments }

Kevin September 7, 2012 at 8:48 am

It’s very disconcerting that the size of the labor force was so manipulated that the headline number of unemployed dropped to 8.1% from 8.3%.

They are clearly doing everything that they can to get the number under 8 percent by election day…

JBH September 7, 2012 at 10:50 am

If you recall, one of BHO’s advisors clarified the 8.3% figure was actually 8.2678948736363638% or something like that arguing it wasn’t really 8.3%. Maybe the 8.1% is really 8.18949596969595949%. Who knows? What we do know is the job market is in the tank.

Blondie September 7, 2012 at 9:13 am

They will be be running with the 8.1 percent like its something to get excited about.i already heard O’Malley from Maryland try and spin it. This is bad news for the President. It’s sad that I’m almost relieved that the numbers aren’t good, but this guy needs to be booted and if he even gets alittle good news people will jump on it.

Knothead September 7, 2012 at 9:13 am

Desperate people do unthinkable things to stay in power. Obama is one of those people. Watch out Americans it’s gonna get nasty.

cincycinco September 7, 2012 at 9:19 am

You know, Hitler was an “elected” official too. He had some guys doing Chicago-style things to ensure the numbers stayed up, once he got in.

http://www.fff.org/freedom/fd0403a.asp

History? Or “coming attractions”?

“Those who do not learn from history are doomed to repeat it”
-George Santayana
http://thinkexist.com/quotation/those_who_do_not_learn_from_history_are_doomed_to/170710.html

cincycinco September 7, 2012 at 9:14 am

I’m afraid the only way to address this is to shink the labor force further. Lay off all of the Democrats from every level of Government without benefits, starting at Barak and working down. After that, the private sector will ACTUALLY be “just fine”.

There will be jobs added, though, since we will need a TON of responsible people to keep the Democrats from hurting themselves or others. They are, by Obama’s own admission (remember”Julia”?)http://www.barackobama.com/life-of-julia/
incapable of taking care of themselves, even to the extent of paying for their own birth control or having their “male freind” actually purchase a prophylactic on his own,
http://cnsnews.com/blog/craig-bannister/sex-crazed-co-eds-going-broke-buying-birth-control-student-tells-pelosi-hearing
so they will have to remain wards of a GREATLY reduced State until such time as they either pass on or are cured of liberalism.

Let’s start taking a collection for them now. It’s going to take a loooong time…

SnarkEsq. September 7, 2012 at 9:20 am

There will be one more jobs report before Election Day, the Friday before voters head to the polls. But that one will probably come too late to influence many voters, whose views about the economy will already have been cemented. This was the big one, and the jump ball went to Romney.

Keith, I agree on that point, but there are actually TWO more jobs reports between now and Election Day. You’re referring to the report for October, which will be out on Friday, November 2nd right before Election Day. However, the next jobs report will be for the month of September and that will be out on Friday, October 5th. That’s the final one to get much attention and have any potential for an impact on the voters because, as you said, the November 2nd report is too close to the election.

In any event, with huge numbers dropping out of the workforce, I bet we’ll be at 7.9 or below by Election Day. Hopefully. people see beyond that to the shrinking job force and very troubling situation we are in:

August number of new jobs created: 96,000
Number who dropped out of the workforce: 386,000

NOT good. I’m happy to see that Romney has already made that point – for every new job created, we have FOUR people dropping out of the workforce. This simply cannot continue!

barkley pontree September 7, 2012 at 10:40 am

that is part of Romney’s problem, “dropped out of the workforce”. Yes, they did, but what really has happened is they have been beaten down, given up, lost all hope. That is the Obama plan to lower unemployment; beat us down until we just give up, give in, lose hope.

That’s some change.

barkleypontree.blogspot.com

pianogirl88 September 7, 2012 at 10:48 am

The jobs report revision will take place in another week or so, and almost every one of them has revised the job “growth” downward. I imagine it will be the same this time, and also for the September report that is due out in early October.

Just2old September 7, 2012 at 9:21 am

The workforce participation rate is the lowest in 31 years. What’s more, BLS revised the previous month’s job growth downwards. This paints a picture of a sputtering economy still struggling to get going again at the end of Barack Obama’s first term.

During Barack Obama’s closing speech at the Democratic National Convention last night, he spent very little time talking about jobs programs and proposals, and very little time defending the jobs policies he’d passed during his first term. His stimulus bill was not popular at the time and, in light of a still-struggling economy, is widely viewed as a failure. The President spent about a sentence promoting his American Jobs Act, which received no traction and died quickly in Congress.
http://townhall.com/tipsheet/kevinglass/2012/09/07/yet_another_disappointing_jobs_report

Gov Romney needs to articulate a clear path to restore this economy. He knows what it takes….he’s been there. He needs to convince the majority who are paying attention that his plan will work and the presidency is his.

Girly1 September 7, 2012 at 9:26 am

The only number we will hear for the next 60 days is 8.1%. Forget the 368K who left the work force in August.
This sets the table for Bernanke to give Obama and Wall St. a gift – QE3.
Meanwhile, U-6 (real unemployment) is 14.7%.
Not included – 2M newly amnetized illegals who will be competing for American jobs.

Just2old September 7, 2012 at 9:39 am

Yep!

Julie Brueckheimer September 7, 2012 at 9:28 am

This figure probably included the 16,000 new IRS agents who will be policing people on whether or not they have health insurance.

Granny Jan/Janice September 7, 2012 at 9:44 am

If the Obamas lose the election in their minds it will be because of racism.
I think he will try to punish us after the election until the inauguration.

They’ll think this country wasn’t good enough to see their greatness. They’ll think that everything that happened to him was because he was black. He always says this when he talks about the Republicans never opposing the same policies in the past untill he proposed them.

There will be a lot of tears but I hope it goes no further than that.
Future historians will partly blame this fiasco on race-obsessed Valerie Jarrett who never seemed comfortable looking almost white yet coming from a prominent black family. Books will be written about her.

MichelleIndependent September 7, 2012 at 11:07 am

Did you read Hillbuzz? Supposedly supporters are buy MOOch and Barry a $35 million home in Hawaii.
A few days ago, Mooch sent around an email asking people to give up a meal and donate to Barry’s campaign.
You can’t make this stuff up.
Obamas=grifters

Star September 7, 2012 at 1:35 pm

I also wonder how he went from $1.7 million in his last return to estimated $10 million. I sit around wondering things.

blondie September 7, 2012 at 12:50 pm

I’m sure I will be accused of being racists,but I agree,if Obama loses,there will be people who claim its due to the color of his skin and not because of his failed policies. I have a real fear that there will be civil unrest in the big cities and I hope to God,the President isn’t a sore loser and will call for calm to prevail. I just picture what happens during a sporting event when a team loses and all hell breaks lose. Lets just hope these people are less passionate about the election than sports.

Deadbolt September 7, 2012 at 1:53 pm

Sadly, I don’t believe your fears will be realized…

I have my standing $1 bet extended to my conservative chums that he WILL be re-elected.

Look, he’s a clown (actually, I honestly feel his wife is worse), but the sad reality is that our real problem is with the cheez-eaters who want more of what this guy is selling…they will be out in force for this election, and they will deliver the win for him early in November.

#$@(*…I wish Excedrin was back on the market…I need some after the thoughts above…

Michael September 7, 2012 at 9:51 am

Actually, there are two more reports, with the last one on the Friday before the election.

I don’t usually pay much attention to CNBC’s Rick Santelli, but this morning he predicted that the November unemployment rate would be 7.9%.

I tend to agree. Obama can claim that as his crowning achievement.

Sadie September 7, 2012 at 6:39 pm

OTOH…

Back in February 2009, the Obama Administration promised the American public that after their nearly trillion dollar stimulus too effect, the unemployment rate would drop down to 5.3% at the end of his first term.

SnarkEsq. September 7, 2012 at 11:09 pm

And WITHOUT the “stimulus”/Democrat slush fund, unemployment would be 6% right now. They passed the damn thing and look where we are! EVERY single projection by Obummer and his cronies has been off by a mile.

Car in September 7, 2012 at 10:03 am

You cannot underestimate the lack of knowledge in the heads of an Obama voter. I had to explain to one, last week, that the unemployment number didn’t actually reflect everyone who was unemployed.

“That doesn’t even make sense,” she said to me. When I told her it was actually a fact, and that she could google it herself, she then went on to argue against the idea of why would anyone STOP looking for work, and that I was probably blaming the victim.

They. Are. So. Stupid.

pianogirl88 September 7, 2012 at 10:25 am

You are so correct….I’m on FB with many of the college students I teach, and they are absolutely LOVING Barack, Michelle, Bill & Joe. One student posted yesterday that he would like nothing better than to go fishing with Biden & Clinton and have a chance to soak in their wisdom. OMG!!!

RickW September 7, 2012 at 10:50 am

Please tell the student that wants to go fishing with Biden & Clinton that he would be better served to wrap some trout around his head and sit in the midday sun.

Sadie September 7, 2012 at 11:49 am

Hook, line and sinker student flounders – your student really took the bait.

barkley pontree September 7, 2012 at 10:36 am

In July, they bragged about 165,000 new jobs while ignoring there were 195,000 less people working than were working in June. Except now they’ve redone the July numbers and there were only 141,000 jobs created, about 24,000 less than they announced. That is a NET LOSS of 54,000 jobs! And they dropped a couple of million from the sample. If you do not have a job and haven’t looked in the last 4 weeks, they drop you from the pool. So what happened in August? The unemployment rate dropped from 8.2 to 8.1. They added 96,000 jobs, which is significantly less than the 141,000 that were added in July. But the rate went down? How?

They dropped another 368,000 out of the labor force. In fact, according to Bloomberg, factory employment fell by the most in two years with 15,000 losing their jobs, temp agencies eliminated positions for the first time in 5 months, and the share of the working age population working fell to the lowest since 1981 to 63.5%. That is the key number. For men, the workforce rate is 69.9% which IS THE LOWEST SINCE 1948!!!

barkleypontree.blogspot.com

Star September 7, 2012 at 1:37 pm

They never ever use the word “net.”

medgas September 7, 2012 at 2:17 pm

I don’t get it…..Romny wanted to let GM and Chrysler go in the tank, net:1,000,000 jobs lost. Ryan and his republican brethren refused to regulate the financial institutions on wall street, net:goes without saying. The economy started to spiral before obama took office because of the so-called trickle down effect, yea okay. further more, bush tax cuts really sank us into the depths because it didn’t trickle down far enough to the middle class. @ major wars to settle a score for H-bush, net:1 trillion dollars a year for 10 yrs. Do you really think that we would be better off with this type of government?

Star September 7, 2012 at 3:42 pm

Romney (he uses an e) wanted structured bankruptcies not huge govt handouts–streamlining these companies for the next century–also the Obama plan screwed bond holders by putting them in second position. So much for people with the guts and disposable to invest in American industry. He went for a stopgap, ran off some money on his little printing press and raked in votes. Yes, I do think when Romney is elected, this will clearly be the last shot–no more excuses, we all have to make it work or else.

barkley pontree September 7, 2012 at 4:35 pm

not only did bond holders and stock holders get screwed, but the UAW got nearly 50% of the new GM and Chrysler stock

barkley pontree September 7, 2012 at 4:33 pm

no, it’s not, but then again, nothing you said comes close to what Romney is planning or has said.

And, just for your information, it was CLINTON that signed the repeal of Glass Steagall and it was CLINTON that pushed thru the rules to allow home loans to people who couldn’t afford them and those two things are what led to the economic meltdown in 2008. Glass Steagall never repealed and the loans to people that couldn’t afford them never passed and there would not have been a meltdown.

Bummer facts, dude.

MichelleIndependent September 7, 2012 at 10:59 am

The little girl in the photo has probably done more work in the Oval Office than Barry the Fraud.

Star September 7, 2012 at 1:38 pm

I think she is trying to catch him and insist on knowing why he mortgaged her future.

barkley pontree September 7, 2012 at 7:06 pm

I’ll bet she’d be running a lot faster if Bill Clinton were still in the Oval Office.

barkleypontree.blogspot.com

Girly1 September 7, 2012 at 11:46 am

Of course, none of these numbers reflect the self-employed – the mom and pop businesses. I have always tried to avoid the generic ‘big box’ stores in favor of the smaller boutique shops. Unfortunately, these places are all gone – out of business. New businesses are shuttered before the leases expire. The real estate boom/bust of the 90′s left us with a graveyard of empty commercial (and residential) space. Very depressing.

Star September 7, 2012 at 3:45 pm

This is esp true out here in AZ–we aren’t talking Fairfax County or Bethesda. The empty stores are like knocked out teeth.

KmB September 7, 2012 at 12:13 pm

Sunday show tip sheet, that famous three letter word, JOBS…

Star September 7, 2012 at 1:31 pm

Do you really think Romney’s people rejoice over misery? I am not sure I do. Sure, it gives them a leg up in rhetoric, but it is also a challenge to fix more of a mess.

cincycinco September 7, 2012 at 2:27 pm

“There is a peace to be found only on the other side of war”, or “its always darkest before the dawn”, take your pick.

No one on the Republican side revels in misery, but it was the other side’s doing. Every generation needs to elect a socalist (Carter? Kennedy? FDR?) just so they can learn for themselves why you don’t want to elect a socialist. Kids are pretty big on not listening to their parents, so they have to burn their own fingers. After that, advice about fire goes to the heart.

Unfortunately, they unleased hell in 2008. It is now necessary to pass through it to get somewhere better. As Patton said, “If you’re going through hell, keep going”.

dill_dough September 8, 2012 at 5:26 pm

total persons in the workforce continues to decline as does the total number of jobs in the economy. the percent unemployment figure that keeps being reported foremost is very misleading. more people out of work now that when oblameya took office.

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