Grim US jobs market confronts Obama, Federal Reserve

Nonfarm payrolls increased only 96,000 last month, the Labor Department said on Friday.

While the unemployment rate dropped to 8.1 percent from 8.3 percent in July, that was because so many Americans gave up the hunt for work. The survey of households from which the jobless rate is derived actually showed a drop in employment.

“This weak employment report, in jobs, wages, hours worked and participation is probably the last piece the Fed needs before launching another round of quantitative easing next week,” said Joseph Trevisani, chief market strategist at Worldwide Markets in Woodcliff Lake, New Jersey.

The lackluster report piled pressure on Obama ahead of the November vote in which the health of the economy looms large.

“This report underscores President Obama's failed promises to get our economy moving again,” House of Representatives Speaker John Boehner, the top Republican in Congress, said in a statement. “Wages are stagnant, gas prices and health care costs are up, our national debt has surpassed US$16 trillion, and millions of Americans remain out of work or underemployed.”

The data dampened spirits in U.S. stock markets, which opened marginally higher. Treasury debt prices rallied and the dollar slipped against the euro to its lowest in nearly four months as traders increased bets the Fed would launch a third round of bond buying at a meeting next Wednesday and Thursday.

Economists polled by Reuters had expected payrolls to rise 125,000 last month, but some had pushed their forecasts higher after upbeat data on Thursday.

1|2|Next Page>>

SHARE CLOSE
Blogger		Google+
Live Journal		Plurk
Stumble Upon

Tweet

	PREVIOUS ARTICLE
	China approves infrastructure package valued over 1 tril. yuan

NEXT ARTICLE
State Dept. at odds with Obama on Israel capital

Write a Comment

Terms

Enter your comments - 3000 characters max

Type in image code

 Receive China Post promos
 Respond to this email

Submit