September 7, 2012

Confidence in Labor Market Continues to Fall

Keith Hall

Former Senior Research Fellow
Summary

Today’s disappointing jobs report showed a modest gain of 96,000 jobs in August and July’s gains were revised down to 141,000 jobs. We’ve now averaged just 87,000 jobs per month since April. Additionally, confidence in the labor market continued to fall as another 368,000 people exited the labor force. This was entirely responsible for the modest drop in the unemployment rate from 8.3% to 8.1%. Just 58.3% of the working aged population were employed in August, the lowest share in a year and one of the lowest in over 25 years.

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Today’s disappointing jobs report showed a modest gain of 96,000 jobs in August and July’s gains were revised down to 141,000 jobs.  We’ve now averaged just 87,000 jobs per month since April.  Additionally, confidence in the labor market continued to fall as another 368,000 people exited the labor force.  This was entirely responsible for the modest drop in the unemployment rate from 8.3% to 8.1%.  Just 58.3% of the working aged population were employed in August, the lowest share in a year and one of the lowest in over 25 years.