Economy Adds Just 96,000 New Jobs in August
Even though the unemployment rate in the country dropped from 8.3% to 8.1%, just 96,000 new jobs were added in August. The latest reports highlighting a sluggish American economy come less than two months away from the presidential election. The figure for new jobs was lower than expected and might slow President Obama’s momentum following the Democratic National Convention that concluded Thursday night.
The Department of Labor released the report on Friday and said that the unemployment rate dropped because fewer people are looking for jobs, as many have given up. The Labor Department only takes into account people as being unemployed if they continue to actively search for new work.
The report Friday also said that there were 41,000 fewer new jobs than originally thought for both June and July. Only 139,000 new jobs have been added on average each month since the beginning of 2012, which is far below the average of 2011 that was 153,000 per month.
Following the release of the report, the Dow futures, which had been up, quickly fell. The figures for new hiring and the unemployment rate will be some of the most influential reports thus far in the race for the White House. They arrive as the race enters its final two month stretch, with jobs being a core issue and the report might help sway undecided voters to make their decision.
Prior to the date of the election, there will be another two jobs reports released, but by the time the next and final one are released, many voters will have already decided on their vote.
Obama acknowledged in his speech Thursday night, accepting his party’s nomination, that his work is still incomplete and asked that country to be patient. However, the question is how much longer voters will wait before deciding his fate in the election.