NAM Chief Economist comments on jobs report.
Press Release Summary:
According to statement made by NAM chief economist, David Huether, on July employment report, economy shed 216,000 last month and unemployment rate increased to 9.7% from 9.4% in July. Numbers were in line with expectations of continued job losses, but at slower pace than earlier months. ISM numbers released offer reason for cautious optimism about the future trend of manufacturing employment, but there are significant risk factors.
Original Press Release:
NAM Chief Economist Comments on Jobs Report
Statement of NAM chief economist David Huether on the July employment report:
The economy shed 216,000 last month and the unemployment rate increased to 9.7%, from 9.4% in July.
The numbers that came out today were in line with expectations of continued job losses, but at a slower pace than earlier months. Manufacturing shed another 63,000 jobs in July.
The ISM numbers released earlier this week offer reason for cautious optimism about the future trend of manufacturing employment, but there are significant risk factors.
The fact that the August decline was the mildest drop in a year is somewhat encouraging. Still, the fact that employment continued to decline shows that an improvement in the labor market, which is needed for a sustained expansion to take hold, is still months away.
At the same time, the fact that the unemployment rate increased more than expected to 9.7 percent will likely weigh on consumer confidence in coming months.
