Disappointing Jobs Report Depresses Markets, Decreases Hiring

Posted on | September 7, 2007 | No Comments

On Friday, the Labor Department released its August Jobs Report. Wall Street types, weary of the recent market lows driven by the mortgage debacle, awaited the release as a sign that the economic expansion we’ve enjoyed for the last 6 years was still, well, expanding. Unfortunately, the report was short on good news for Wall Street and the economy, though it managed a few nuggets for the rest of us (savvy bone-pickers who can find the last scrap of meat on the job bone).
Here’s the rub!

BAD NEWS!

- U.S. Payrolls fell by 4,000 (first decline in 4 years!), indicating businesses slowing or deferring hiring and big job losses in certain industries
- Employment declined in these industries:

• Manufacturing (-46,000 jobs in August; 215,000 year-to-date)
• Construction (-22,000)
• Motor vehicles and parts (-11,000)
• Machinery (-7,000)
• Wood products (-7,000)
• Furniture and related products (-4,000)
• Semiconductors and electronic components (-4,000)
• Apparel (-4,000) and textile (-2,000) manufacturing
• Local government and education

GOOD NEWS!

+ Average hourly earnings increased 0.3% (over July) to $17.50 in August
+ Industries that gained jobs include:

• Health care (+35,000 in August; 396,000 year-to-date)
• Healthcare components:
• Ambulatory care services (+18,000)
• Hospitals (+11,000)
• Nursing and residential care (+6,000)
• Social assistance (+14,000)
• Food services and drinking places (+24,000)

+ The unemployment rate held steady at 4.6%, or 7.1M unemployed

+ Unemployment rates by race/gender virtually unchanged at:

• Adult men (4.1 percent)
• adult women (4.1 percent)
• Teenagers (16.1 percent)
• Whites (4.2 percent)
• Blacks (7.7 percent) <--This is bad news. But, at least it didn't get worse!
• Hispanics (5.5 percent)
• Asians (3.4 percent)

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