Another Bleak Jobs Report as Unemployment Edges Up to 9.6 Percent

This report by Dean Baker supports the case that unemployment is cyclical, not structural. It originally appeared at the Center for Economic and Policy Research.

The unemployment rate edged up to 9.6 percent in August as the economy shed 54,000 jobs. The decline was entirely attributable to the loss of 114,000 temporary Census jobs. Excluding these jobs, the economy created 60,000 jobs. With job growth for the prior two months revised up by 123,000, excluding the Census jobs, the August pace is roughly even with June and July.

The largest increases in unemployment were among African Americans who saw their overall rate rise 0.8 percentage points to 16.3 percent, near the recession peak. The unemployment rate for black teens jumped 4.8 percentage points to 45.4 percent. Unemployment for Hispanics edged down to 12.0 percent, a full percentage point below its year-ago level.

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Involuntary part-time employment rose by 344,000, reversing declines in the prior two months. All the duration measures of unemployment fell, but this likely reflected the long-term unemployed dropping out of the workforce as their benefit period ended. The percent of the unemployed attributable to voluntary quits fell 0.3 percentage points to 5.9 percent, which is near its low-point for the downturn.

Posted in Economic Issues, Employment, Uncategorized, Workers. Comments Off on Another Bleak Jobs Report as Unemployment Edges Up to 9.6 Percent
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