(PRWEB) September 12, 2012
The monthly jobs report for August shows US employers added a disappointing 97,000 jobs, leaving the unemployment rate above 8%. As reported by msnbc.com, the U.S. economy created 96,000 jobs in August. This figure is less than what had been expected and further shows that the nation’s job-creation machine is stumbling even as voters’ attitudes about the economy begin to get ahead of the November election. Based on figures released by the Labor Department this past week, the unemployment rate dropped to 8.1%, but many would-be job seekers have stopped looking.
Job-creation has stumbled since March amid worries about consumer spending, the debt crisis in Europe and stagnation in Congress. “There’s just not a lot of momentum in the economy,”said Sam Bullard, an economist at Wells Fargo in Charlotte, North Carolina.
The details of the report were unsettling. The government said the economy created fewer jobs in the second quarter than previously estimated. The somber report might push the Federal Reserve closer to taking new actions to lower borrowing costs to encourage companies to increase hiring. Analysts polled by Reuters had expected an increase in payrolls of 130,000 jobs.
Lance Denha, Esq. of The Law Offices of Lance Denha has previously noted that this continual decline or stagnation of the labor market could cause a new ripple effect in the already weak housing market. Mr. Denha elaborated that “Many families have previously held off foreclosure with the anticipation of finding work while using their savings to meet their mortgage obligation. This prolonged jobs environment has unfortunately put these same families at the cross roads of losing their homes. They have now exhausted their savings with little hopes of finding employment in the foreseeable future.” Although the national unemployment rate has fallen from its peak of 10 percent in October 2009, nearly 13 million Americans remain jobless. “This means that many more homeowners that have been current with their mortgage are at that threshold of falling behind,” noted Mr. Denha.