Economic Statistics for 06 Sep 13
The BLS reports that a sluggish 169,000 net new jobs were created in August, though unemployment rate fell -0.1% to 7.3%, as 312,000 people left the labor force. The labor force participation rate declined to 63.2%, the lowest since 1978. The average workweek rose a single tick to 34.5 hours, while average hourly earnings rose a nickel to $24.05. Using the average labor force participation rate prior to the 2009 recession, the real unemployment rate stands at 11.46%. There is nothing good in this report. The unemployment rate dropped only because a third of a million workers left the labor force. The rate of job creation is roughly 100,000 jobs less than the rate of creation we need just to keep up with population growth. The real rate of unemployment is essentially the same as it was all the way back to January of 2012, since we’ve been hovering within a tick or two of 11.5%. We have essentially gained no ground whatsoever in the labor market for 20 months.