Zero net jobs were created in August vs expectations of +68k but it does include a reduction of 45k due to the Verizon strike where all will come back in the Sept data. The private sector created 17k, well below expectations of 95k. The household survey did add 331k after job losses in the two prior months but because the labor force rose by 366k, the unemployment rate held steady at 9.1%. The U6 rate rose .1% to 16.2%. Also disappointing, avg hourly earnings fell by .1% m/o/m and is up just 1.9% y/o/y, well below the recent CPI readings of 3%+ and the avg workweek ticked down to 34.2, the lowest since Jan. The avg duration of unemployment fell a hair from its record high. Manufacturers shed jobs for the 1st time since Oct ’10. Jobs were also lost in construction, retail, and at the local government level (state and federal added workers). Jobs were added in finance, business services including temp, education/health and leisure/hospitality. Bottom line, the number sucked and looking to the next few weeks we’ll hear more about QE3 and Obama’s jobs plan and the political class will still not understand that short term steroid shots into the economy does not alter long term behavior and a price is always paid when the stimulus wears off, aka debt, taxes and inflation. The US economy needs to FERBERIZED and left alone instead of being attended to every 2 hours.
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