August Job Report Reflects Weak Numbers

We try not to be doom and gloom here on a Friday afternoon but we just need to call it like we see it.

The Labor Department issued the monthly jobs report today and it appears that job growth is slowing down.

In August, 169,000 jobs were added and unemployment dropped to 7.3 percent. The numbers seem grim since a Bloomberg survey indicates economists were actually expecting a boost of 180,000 jobs. Unemployment was anticipated to remain steady at 7.4 percent.

Managing director and Sterne Agee chief economist Lindsey M. Piegza stated to ABC News, “Clearly the labor market is losing momentum.”

Even the lower unemployment rate isn’t exactly a cause for celebration. She attributed the slight drop to “inorganic reasons.” Some experts are saying people are dropping out of the labor force altogether thereby continuing to the decreased rate.

Stephen Bronars, senior economist at Welch Consulting, told the news site, “The unemployment rate is declining for all the wrong reasons – people are dropping out of the workforce.”