Excellent Article on the August Unemployment Report
A Quick Summary
- Unemployment fell by 0.2% to 8.1%
- The number of employed Americans also fell by 119,000
- (Not in the article) U1-6 all fell, both seasonally and unseasonally adjusted
- The reason for this is many of the people who left the labor force over the last year have been very old or young. The older individuals (over 65) have left to retire (probably because they couldn't get another job) and similarly the younger people probably went back to school for the same reason.
- The Labor Participation rate has fallen to about 63%, the lowest level in 3 decades
So all in all, things look really ugly, still. It seems to me that this report showed that, since we have fewer people employed, there is less money that consumers can spend on goods and services, which is really what I care about at this point, so we are still heading in the wrong direction employment wise.
Here is the article