WASHINGTON (AP) -
U.S. employers added 96,000 jobs last month, a
weak figure that could slow the momentum President Barack Obama hoped
to gain from his speech Thursday night to the Democratic National
Convention.
The unemployment rate fell
to 8.1 percent from 8.3 percent in July. But that was only because more
people gave up looking for work. People who are out of work are counted
as unemployed only if they're looking for a job.
The government also said
Friday that 41,000 fewer jobs were created in July and June than first
estimated. The economy has added just 139,000 jobs a month since the
start of the year, below 2011's average of 153,000.
Dow Jones industrial
futures, which had been up before the report, fell soon after it was
released but then bounced back. And the yield on the benchmark 10-year
Treasury note tumbled to 1.63 percent, from 1.73 percent. That suggested
that investors still see a slow economy, resulting in more demand for
low-risk investments like U.S. Treasurys.
Jim O'Sullivan, chief U.S.
economist at High Frequency Economics, noted that hiring has improved
slightly in the past two months. Job gains averaged 119,000 in July and
August, up from an average monthly gain of 67,000 in the April-June
quarter.
"There's no sign of
momentum fading," he said. "That said, it's not much better. ... What
you're left with is an economy that's still growing, but pretty
modestly."
Friday's report provided
fodder for both presidential candidates. Republican nominee Mitt Romney
has pointed to 43 straight months in which unemployment has exceeded 8
percent.
At the same time, the
report marks the 30th straight month of private-sector job gains, a
point Obama and his allies are certain to spotlight.
The report was discouraging
throughout. Hourly pay fell, manufacturers cut the most jobs in two
years and the number of people in the work force dropped to its lowest
level in 31 years.
Sluggish hiring could nudge
the Federal Reserve to announce some new action to boost growth after
it holds a policy meeting next week.
The report on hiring and
unemployment is among the most politically consequential of the
campaign. The figures arrive just as the presidential race enters the
final two months before Election Day. Jobs are the core issue, and the
report could sway some undecided voters.
There will be two additional employment reports before the election. But by then, more Americans will have made up their minds.
In his speech Thursday
night, Obama acknowledged incomplete progress in repairing the
still-struggling economy and asked voters to remain patient.
"The truth is, it will take more than a few years for us to solve challenges that have built up over the decades," Obama said.
In addition to those who've
given up looking for work, many young Americans are avoiding the job
market by remaining in school. All told, the proportion of the
population that is either working or looking for work fell to 63.5
percent. That's the lowest level in 31 years for the labor force
participation rate.
Average hourly wages dipped a penny to $23.52 and are only slightly ahead of inflation in the past year.
The average work week was
unchanged in August after being revised downward in July to 34.4 hours.
And the number of temporary jobs fell for the first time in five months.
Both figures suggest that companies are seeing less demand for their
services and need fewer workers.
Many of the jobs were in
lower-paying industries such as retail, which added 6,100 jobs, and
hotels, restaurants and other leisure industries, which gained 34,000.
Higher-paying manufacturing jobs fell by 15,000, the most in two years.
The weak pace of hiring is
the latest sign that businesses are reluctant to make big investments or
add more workers. Europe's financial crisis has pushed the region's
economy to the edge of recession. And a set of tax hikes and spending
cuts scheduled to take effect at the beginning of the year have created
uncertainty about future growth.
No president since Franklin
D. Roosevelt during the Great Depression has been re-elected with a
jobless rate over 8 percent. This year's election will likely turn on
whether voters see the economy as improving or remaining stagnant or
getting worse under Obama.
Copyright
2012 The Associated Press. All rights reserved. This material may not
be published, broadcast, rewritten or redistributed.
