August NFP = 96,000

According to the Labor Department, just 96,000 new jobs were created last month. The private sector added 103,000 new jobs. The number for July was revised higher to 141,000. The unemployment rate ticked down to 8.1% from 8.3%.

Employers may be reluctant to expand headcounts as they face a global economic slowdown and the so-called fiscal cliff of automatic tax increases and government spending cuts. The damage inflicted by the lack of progress on jobs is the reason Federal Reserve Chairman Ben S. Bernanke last week said the central bank may need to do more.

“This is definitely a setback for the labor market and the economy,” said Michael Feroli, chief U.S. economist at JPMorgan Chase & Co. in New York and former economist for the Fed. “This clearly validates Bernanke’s concern. We have Europe, the fiscal cliff, and it is a generally cautious business environment.”

Posted by on September 7th, 2012 at 9:29 am


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