Private Sector trying to keep employment up

U.S. employment fell for a third straight month in August, but the drop was far less than expected and private hiring surprised on the upside, easing pressure on the Federal Reserve to prop up economic growth.

Nonfarm payrolls declined 54,000, the Labor Department said on Friday, helping to assuage fears of a double-dip recession. Financial markets had looked for a drop of 100,000 jobs.

However, the data will likely do little to take the political heat off President Barack Obama over his handling of the economy or improve the Democratic Party’s chances in November’s mid-term congressional elections.

“It is inconsistent with fears that a sharp slowdown in the economy is under way. This report, together with other recent data, will convince the Fed to refrain from launching a new asset purchase program at this month’s meeting,” said Dean Maki, chief U.S. economist at Barclays Capital in New York.

The fall in payrolls last month was largely a result of 114,000 temporary census workers being laid off.

Wait, you mean those census jobs that everyone was so excited about were only temporary?

Private employment, considered a better gauge of labor market health, increased 67,000 after a revised 107,000 gain in July. Markets had expected a rise of only 41,000 in August.

In addition, the government revised payrolls for June and July to show 123,000 fewer jobs lost than previously reported.


About BizTV

BizTV is the home for your business. Whether you're an entrepreneur, small business owner or just managing your family's assets, BizTV can help. Find the resources you need to manage your money, start your latest venture or grow your business. BizTV, It’s Your Biz!

Posted on September 3, 2010, in Job Search, Market Trends and tagged , , , , , . Bookmark the permalink. Leave a comment.

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s

%d bloggers like this: