Unemployment rate drops, but enthusiasm fades fast Published: Saturday, October 06, 2012, 6:45 AM Updated: Saturday, October 06, 2012, 6:45 AM Ed Beeson/The Star-Ledger By Ed Beeson/The Star-Ledger unemployment-hollister-store.JPGView full sizeSpencer Platt/Getty ImagesAn employee at a Hollister retail store in Manhattan assists with a line of customers Friday. In fresh signs that the U.S. economy is gaining speed, the latest jobs market data for September showed that the U.S. labor market has improved. The unemployment rate fell below 8 percent for the first time in 43 months.
The lumbering U.S. economy and President Obama's re-election campaign got a jolt yesterday when the federal Labor Department reported the country’s unemployment rate fell to its lowest level in nearly four years.
But the enthusiasm proved to be short-lived, both among economists and on Wall Street.
The jobless rate fell 7.8 percent in September, the lowest it has been since Obama was sworn into office in January 2009, according to the Labor Department’s monthly survey of households. In August, the unemployment rate was 8.1 percent, and it had been hovering between that and 8.3 percent for much of the year.
Meanwhile, a separate survey by the Labor Department showed employers added more jobs over the summer than the government originally estimated. In addition to adding 114,000 jobs to the economy last month — about what economists were expecting — the department’s reports for July and August were revised upward by a combined 86,000 jobs.
And unlike recent months when the unemployment rate fell because people left the labor market after giving up looking for work, the current survey found the unemployment rate declined as more people entered the labor market, a sign those without jobs were managing to find work, economists said. Weekly wages also have inched up.
Despite the drop in the unemployment rate, economists offered muted enthusiasm for the new data.
For one, the survey of households that produced the 7.8 percent jobless rate found that total employment grew by 873,000 in September, which is far from what employers say they added. While these numbers take into account jobs the employment survey doesn’t count — such as start-up companies and informal work — the household survey tends to be more prone to fluctuations.Meanwhile, a separate critical measure of the nation’s job market remained unchanged last month. The U-6 data which takes into account not just those who are unemployed and looking for work, but also those who want a job but aren’t looking and those can only find part-time jobs remained stuck at 14.7 percent. The growth in the July and August jobs reports came from gains in local government and education hiring, said Marisa Di Natale, an economist with Moody’s Analytics. That could be a result of a seasonable adjustment to the data, rather than a reflection of actual hiring, she said.
The biggest gainer was the health-care sector, which added 44,000, or more than a third of all new jobs last month. Much of this growth, which has been consistent throughout the financial crisis, is driven by the need to care for the country’s aging population, said Anika Khan, a Wells Fargo senior economist.
Still, it appears there has been little relief for those who have been out-of-work the longest. Long-term unemployment, or those who have been looking for a job for six months or more, remained stubbornly high last month, at about 4.8 million people, or 40 percent of all those who are unemployed.
Many of the out-of-work are middle-aged people who could be retrained for new jobs, said Carl Van Horn, director of the Heldrich Center for Workforce Development at Rutgers University.
Tags: Morici | Unemployment | Workers | jobs Morici to Moneynews: Unemployment Fell on Part-Time Workers, Not Real Improvement
Friday, 05 Oct 2012 11:24 AM
By Forrest Jones and Steve Cordasco Share: More . . . A A | Email Us | Print | Forward Article
0 inShare
The U.S. employment rate dropped to 7.8 percent in September from 8.1 percent in August, thanks largely to gains in part-time workers and not due to noted fundamental improvements in the labor market, said Peter Morici, a professor at the Robert H. Smith School of Business at the University of Maryland.
The economy added a net 114,000 jobs, the Bureau of Labor Statistics reported, adding its household survey reported that total employment rose by 873,000 in September, much of which was due to an increase in part-time work. Some 582,000 Americans took part-time positions because of slack business conditions or those jobs were the only work they could find.
The number of unemployed Americans stands at 12.1 million, the fewest since January 2009, though keep the champagne on ice for now.
"We’re basically creating jobs at the pace that the population grows. We’re not really getting a real decline in unemployment," he said.
"If we go back to when the recovery began, the unemployment rate was 10 percent. Today’s numbers, if the adult participation was where it was then, we’d be at 9.7-9.8 percent unemployment."
The number caught many market observers off guard, surprising many who were expecting the unemployment rate to remain steady or even rise to 8.2 percent.
Former General Electric boss Jack Welch said on his Twitter page that the numbers appeared manipulated.
"Unbelievable jobs numbers..these Chicago guys will do anything..can't debate so change numbers," Welch said on his Twitter page, referring to President Barack Obama's performance in the first presidential debate earlier this week.
Editor's Note: Economist Unapologetically Calls Out Bernanke, Obama for Mishandling Economy. See What They Did
While the Obama administration did not likely cook the numbers, which is very hard to do, it shouldn't rush out and claim victory over a soft jobs market and a sluggish economy.
"The economy’s in neutral," Morici said.
"I would give the president the grade of C if he had just taken office and, frankly, a failing grade at this point in time given this very poor performance."
Meanwhile, expect the government to take the numbers and claim the economy is healthier than it really is.
Read more: Morici: Unemployment Fell on Part-Time Workers, Not Real Improvement
Total Employment Rises 873,000 To Highest Level Since December 2008 By Noel Sheppard | October 05, 2012 | 08:45
The unemployment rate decreased to 7.8 percent in September, a number certain to impact the presidential race.
Pundits have been saying for months this number had to drop below 8 percent for it not to be a hindrance to President Obama's reelection chances.
The economy added 114,000 nonfarm payrolls in the month according to the Bureau of Labor Statistics with gains in healthcare, transportation and warehousing.
Truly shocking in the report was that the number of unemployed people dropped by 456,000 to 12.1 million.
Maybe more shocking, total employment, as measured by the Household Survey, rose by 873,000 in September to 142,974,000, the biggest one month jump since June 1983.
As such, total employment now stands at the highest level it's been since December 2008 before Obama was inaugurated.
But even more mysterious is the divergence in the two surveys done by the Labor Department.....................>>>>.....................>>>>...................Read more: http://newsbusters.org/blogs/n.....r-2008#ixzz28WnxQrhM
How many people left the job force the past four years and just gave up so are no longer counted?
"While Foreign Terrorists were plotting to murder and maim using homemade bombs in Boston, Democrap officials in Washington DC, Albany and here were busy watching ME and other law abiding American Citizens who are gun owners and taxpayers, in an effort to blame the nation's lack of security on US so that they could have a political scapegoat."
We haven't heard the best of the bullsh!t yet!! Be ready to read and hear the lame stream media's twisted polls and mistruths about these candidates! It will be a media storm from now until November. Remember folks.....it's all about viewership and $$$$$$$.
And then Boxy gas prices went down under George Bush. He looks better and better with the current Chicago incompetent. California prices went up 20 cents overnight and are over $6 a gallon under lying Obama. Here's the worst part Obama wants them to go up even more! It's public policy to have higher gas prices to help his solar backers. BTW, expect another bomb about Obama's overseas backers. That's why we was "distracted" at the debate. It's over-it will not be close. NYS voters are the minority that like higher taxes and incompetent government.
it was his anniversary. ALL union workers get that off, dont you know?
"While Foreign Terrorists were plotting to murder and maim using homemade bombs in Boston, Democrap officials in Washington DC, Albany and here were busy watching ME and other law abiding American Citizens who are gun owners and taxpayers, in an effort to blame the nation's lack of security on US so that they could have a political scapegoat."
A point to make.......Obama stated the next day after the debate that Romney wanted to cut teachers... ' distinctly heard Romney say....he wanted to hire 100K teachers...just example of lies upon lies...
the lies and what is going on....is a tragedy.....and these are the choicewe have for leaders???
I would like to move to Tin Buck 2.....and have some peace.
and pretty soon we will be in the $5 + for gas.......takes awhile to come across the country....but it;s in CA already....
so the polls re the gas prices will be wrong....as with all the polls....inflated numbers......just like unemployment figures....What a joke...
Its only a matter of time before he owns the record nationally.
"Arguing with liberals is like playing chess with a pigeon; no matter how good I am at chess, the pigeon is just going to knock out the pieces, crap on the board, and strut around like it is victorious." - Author Unknown
and pretty soon we will be in the $5 + for gas.......takes awhile to come across the country....but it;s in CA already.... .
We will feel it before our pumps are reading $5. I'm sure eastbound freight rates out of California are skyrocketing. Much of the produce you see on the shelves in the grocery store is grown in California. Keep an eye on your grocery bill.
The modern conservative is engaged in one of man's oldest exercises in moral philosophy; that is, the search for a superior moral justification for selfishness. John Kenneth Galbraith
WOW.......Bush I and II must be making a bundle off these high gas/oil prices....eh?
When the INSANE are running the ASYLUM In individuals, insanity is rare; but in groups, parties, nations and epochs, it is the rule. -- Friedrich Nietzsche
“How fortunate for those in power that people never think.” Adolph Hitler
Conservative economist Douglas Holtz-Eakin and Moody's chief economist Mark Zandi both defended the latest jobs report under attack from some Republicans who said that Friday's drop in the unemployment rate is due to meddling from the Obama administration, in an appearance on CNN's "State of the Union" Sunday.
"The numbers were collected in a professional way. It's the same procedures used every month," Holtz-Eaken said. "It's a statical anomaly, not a conspiracy."
Zandi called the accusations against the Obama camp "counterproductive." "I think it's counter-productive because it seeks to undermine the legitimacy of the political process,"
The modern conservative is engaged in one of man's oldest exercises in moral philosophy; that is, the search for a superior moral justification for selfishness. John Kenneth Galbraith
Don't you think that it's weird that Obama gets OMGWTFPWNED at the debate and that Thursday....*poof!*.... The unemployment rate magicly drops 0.3%?
Even just a little?
"Approval ratings go up and down for various reasons... An example is the high post 911 support for GWB even though he could be said to be responsible for the event." --- Box A Rox '9/11 Truther'
Melania is a bimbo... she is there to look at, not to listen to. --- Box A Rox and his 'War on Women'
Don't you think that it's weird that Obama gets OMGWTFPWNED at the debate and that Thursday....*poof!*.... The unemployment rate magicly drops 0.3%?
Even just a little?
The Republicans who know how those numbers are compiled, say it's impossible to cook the book. Of course the GOP knows that but FACTS have never been their strong suit. They do much better with accusations and innuendo.
The modern conservative is engaged in one of man's oldest exercises in moral philosophy; that is, the search for a superior moral justification for selfishness. John Kenneth Galbraith
Logged
And then Boxy gas prices went down under George Bush. He looks better and better with the current 
