The U.S. Labor Department released the August jobs report which shows that non-farm payrolls grew to a seasonally adjusted 96,000 in August, weaker than the 120,000 estimated and showing that there is slowing momentum with job creation.
The July non-farm payroll number was revised from 163,00 to 141,00 while June’s non-farm payroll number was revised to 45,000 from 64,000.
The U.S. unemployment rate fell to 8.1 percent from 8.3 percent in August only because more Americans gave up looking for work since 368,000 people dropping out of the U.S. labor force.
Republican presidential candidate Mitt Romney responded to the weak job report by issuing a statement.
“After 43 straight months of unemployment above 8 percent, it is clear that President Obama just hasn’t lived up to his promises and his policies haven’t worked,” Romney said in a statement before he traveled to Iowa.
“We aren’t better off than they were four years ago. My plan for a stronger middle class will create 12 million new jobs by the end of my first term. America deserves new leadership that will get our economy moving again” Romney stated.
President Obama is expected to release a statement later in the day.
The weak increase in August with more Americans dropping out of the labor force boosts the odds that the Federal Reserve may decide to move in the direction of quantitative easing (QE3) at the next FOMC meeting next Thursday.
Fed Chairman Ben Bernanke said last week that the labor market’s slow down was a “grave concern.”
Chairman Bernanke concluded his speech last week by stating that the Federal Reserve will provide additional policy accommodation “as needed” to promote a stronger economic recovery and sustained improvement in labor market conditions.