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August Jobs reports disappoints

Yes, the unemployment rate fell from 8.3 to 8.1 percent. But it's the reason why that matters.

Unemployment job fair 2012Enlarge
Unemployed workers attend a job fair at the Washington Convention Center Aug. 23, 2012, in Washington, DC. The US added a disappointing 96,000 nonfarm jobs in August, and the unemployment rate fell to 8.1 percent from July's 8.3 percent. (Chip Somodevilla/AFP/Getty Images)

The Bureau of Labor Statistics released its jobs reports today, saying that while the US added just 96,000 jobs in August, 34,000 less than expected, the unemployment rate fell from 8.3 to 8.1 percent.

Why?

According to the Bureau of Labor Statistics, "the number of long-term unemployed (those jobless for 27 weeks or more) was little changed at 5.0 million."

The Wall Street Journal says that's "a far cry from last August’s 6.02 million people."

This deduction likely means that while the unemployment rate fell, it's only because people stopped looking for work, not because they found a job.

According to the Bureau of Labor Statistics, the US has 12.5 million unemployed people. That number only counts those who are registered as actively searching for work. There are likely millions more.

Business Insider points out the workforce participation rate is at its lowest level since 1981.

USA Today also made a couple of salient points. They said the eurozone debt crisis, an intractable Congress and the rising cost of gas has contributed to the US's sluggish recovery.

http://www.globalpost.com/dispatch/news/business/120907/august-jobs-reports-disappoints