make WWAY your homepage  Become a fan on facebook  Follow us on twitter  Receive RSS Newsfeeds  MEMBERS: Register | Login

August job loss shocks economists

There was good economic news in August, with strong retailing and manufacturing numbers. But there was also bad news: the Labor Department says 4,000 jobs were lost last month and that has caught economists by surprise. The report was a shock. August marked the first down month for American job growth figures in four years. In a month where economists were expecting the nation's employers to add about 120,000 to their payrolls. In addition to the decline for August, Wall Street was faced with a downward revision for June and July's jobs numbers that took another 81,000 previously reported jobs off the table. The reaction to the news put traders into a tailspin, pushing the Dow down by triple-digits at the opening bell. Why are they worried? Friday's bad jobs report has many economists seriously concerned about the possibility of a recession. Recent indicators of declining consumer confidence and the decrease in big-ticket purchases plus the continuing slump in the housing market are pointing to an economic slowdown that could be expanding. At this point government and private sector economists are hopeful we won't see a recession -- but acknowledge that the slow-down could be more significant than they previously thought. The Federal Reserve meets in 11 days -- many people believe the central bankers will cut interest rates to lending institutions to stimulate economic activity.

Disclaimer: Comments posted on this, or any story are opinions of those people posting them, and not the views or opinions of WWAY NewsChannel 3, its management or employees. You can view our comment policy here.



The content of this field is kept private and will not be shown publicly.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.

More information about formatting options

To prevent automated spam submissions leave this field empty.
Please re-enter the code shown in the image below.