The reality is that more than three years into this weakest of economic recoveries, 12.1 million Americans are still out of work””nearly 23 million by the broader definition that includes those who have stopped looking or can’t find full time work””and the labor participation rate is still down to 1981 levels at 63.6%. Hooray!
Of the 114,000 new jobs, 104,000 were in the private economy, and all of the 86,000 in upward revisions for July and August came in government jobs. Job growth for 2012 has averaged 146,000 a month, which is down from 153,000 in 2011.
Manufacturing employment fell again (down 38,000 in the last two months) further dampening one of the few bright spots in this recovery. A still abysmal 40.1% of the unemployed in America have been jobless for six months or more. Such a job market is anemic by any historic measure for this stage in an expansion and reflects continuing slow GDP growth in the 1%-2% range.
Although I did not see it in this article, another one mentioned what may be the most ominous, long-term concern. The male labor participation rate is the owest in SIXTY years. That does not bode well for our society. The fact that the unemployment rate removes those who have given up makes it a meaningless metric