[h=3]By JEFFREY SPARSHOTT And ERIC MORATH[/h]WASHINGTON—U.S. job growth slowed in August, a sign of a slack recovery that could slow any postconvention momentum for President Barack Obama and spur the Federal Reserve to take further steps in an effort to stimulate the economy.
U.S. payrolls increased by a seasonally adjusted 96,000 jobs last month, the Labor Department said Friday. The politically important unemployment rate, obtained by a separate survey of U.S. households, fell to 8.1% from 8.3%, mainly because of more people dropping out of the work force.
Economists surveyed by Dow Jones Newswires expected a gain of 125,000 in payrolls and an 8.3% jobless rate.
Republicans and Democrats will seize on Friday's numbers—the economy has added jobs every month since September 2010, though the pace has been uneven and the recovery remains tepid. Job growth has averaged 139,000 a month so far this year, compared with 153,000 in 2011.
Democrats at their national convention in Charlotte, N.C., this week said Mr. Obama had put the U.S. on the path to recovery and he would fight hardest for workers and the middle class. Mr. Obama Thursday night said his re-election would lead to "new jobs, more opportunity" and an economy built "on a stronger foundation."
Republicans are seeking to persuade voters that the president has increased deficits without giving enough of a boost to the economy to earn a second term. A spokesman for Republican candidate Mitt Romney this week said Mr. Obama "has the worst economic record of any president in modern history."
Compounding the weak August report, July and June payroll numbers were revised down—July payrolls rose 141,000, compared with the initially reported 163,000, and June was up 45,000, versus an earlier estimate of 64,000.
The U.S. economy added 96,000 jobs in August, fewer than expectations for 125,000 and an indication of a slack recovery. The unemployment rate fell to 8.1%. Phil Izzo in New York and Sudeep Reddy in Washington have details on The News Hub. Photo: Getty Images.
The latest news comes just days ahead of a meeting of Federal Reserve policy makers. Central bank Chairman Ben Bernanke, speaking at a Fed conference in Jackson Hole, Wyo., last week said the Fed shouldn't rule out new efforts to lower what he described as gravely high unemployment.
The Fed has several tools at its disposal, though markets have been speculating most heavily on whether it would launch another large bond-buying program. Mr. Bernanke and other senior officials believe such programs, often dubbed quantitative easing, or QE, drive down long-term interest rates, push up stocks and other asset values, and soften the value of the dollar. They thereby can boost spending, investment and exports.
Another round of bond purchases would be the Fed's third.
"We think the Fed will launch QE3 on a consensus (or lower) employment report," economists at RBC Capital Markets said ahead of Friday's report.
[h=3]A Historical View[/h]U.S. unemployment since 1948
The Labor Department on Friday said private companies accounted for all of the growth in August payrolls, adding 103,000 jobs during the month.
Governments, meanwhile, shed 7,000 positions as state and local governments cut payrolls.
In the private sector, employment rose at restaurants and bars, in the professional- and technical-services sector, in health care and in the utilities sector.
Manufacturing employment fell by 15,000, led by a drop in the auto sector. The Labor Department attributed part of the change to seasonal factors—there were fewer layoffs than expected in July, when the sector added 14,000 jobs, and fewer recalls in August.
In another sign of a weak labor market, average earnings ticked down by one cent to $23.52 an hour, while the average workweek was unchanged at 34.4 hours.
A broader measure of unemployment—which includes job seekers as well as those in part-time jobs—fell to 14.7% in August from 15.0% the previous month.
Write to Jeffrey Sparshott at [email protected] and Eric Morath at [email protected]
U.S. payrolls increased by a seasonally adjusted 96,000 jobs last month, the Labor Department said Friday. The politically important unemployment rate, obtained by a separate survey of U.S. households, fell to 8.1% from 8.3%, mainly because of more people dropping out of the work force.
Economists surveyed by Dow Jones Newswires expected a gain of 125,000 in payrolls and an 8.3% jobless rate.
Republicans and Democrats will seize on Friday's numbers—the economy has added jobs every month since September 2010, though the pace has been uneven and the recovery remains tepid. Job growth has averaged 139,000 a month so far this year, compared with 153,000 in 2011.
Democrats at their national convention in Charlotte, N.C., this week said Mr. Obama had put the U.S. on the path to recovery and he would fight hardest for workers and the middle class. Mr. Obama Thursday night said his re-election would lead to "new jobs, more opportunity" and an economy built "on a stronger foundation."
Republicans are seeking to persuade voters that the president has increased deficits without giving enough of a boost to the economy to earn a second term. A spokesman for Republican candidate Mitt Romney this week said Mr. Obama "has the worst economic record of any president in modern history."
Compounding the weak August report, July and June payroll numbers were revised down—July payrolls rose 141,000, compared with the initially reported 163,000, and June was up 45,000, versus an earlier estimate of 64,000.
The U.S. economy added 96,000 jobs in August, fewer than expectations for 125,000 and an indication of a slack recovery. The unemployment rate fell to 8.1%. Phil Izzo in New York and Sudeep Reddy in Washington have details on The News Hub. Photo: Getty Images.
The latest news comes just days ahead of a meeting of Federal Reserve policy makers. Central bank Chairman Ben Bernanke, speaking at a Fed conference in Jackson Hole, Wyo., last week said the Fed shouldn't rule out new efforts to lower what he described as gravely high unemployment.
The Fed has several tools at its disposal, though markets have been speculating most heavily on whether it would launch another large bond-buying program. Mr. Bernanke and other senior officials believe such programs, often dubbed quantitative easing, or QE, drive down long-term interest rates, push up stocks and other asset values, and soften the value of the dollar. They thereby can boost spending, investment and exports.
Another round of bond purchases would be the Fed's third.
"We think the Fed will launch QE3 on a consensus (or lower) employment report," economists at RBC Capital Markets said ahead of Friday's report.
[h=3]A Historical View[/h]U.S. unemployment since 1948
The Labor Department on Friday said private companies accounted for all of the growth in August payrolls, adding 103,000 jobs during the month.
Governments, meanwhile, shed 7,000 positions as state and local governments cut payrolls.
In the private sector, employment rose at restaurants and bars, in the professional- and technical-services sector, in health care and in the utilities sector.
Manufacturing employment fell by 15,000, led by a drop in the auto sector. The Labor Department attributed part of the change to seasonal factors—there were fewer layoffs than expected in July, when the sector added 14,000 jobs, and fewer recalls in August.
In another sign of a weak labor market, average earnings ticked down by one cent to $23.52 an hour, while the average workweek was unchanged at 34.4 hours.
A broader measure of unemployment—which includes job seekers as well as those in part-time jobs—fell to 14.7% in August from 15.0% the previous month.
Write to Jeffrey Sparshott at [email protected] and Eric Morath at [email protected]