Chart of the Day: Net New Jobs in August

Facts matter: Sign up for the free Mother Jones Daily newsletter. Support our nonprofit reporting. Subscribe to our print magazine.

The August jobs report is out, and it doesn’t have much good news. My usual monthly jobs chart is below: since the economy needs about 90,000 new jobs just to keep up with population growth, I subtract 90,000 from the raw jobs figures to show net new job creation. And what this shows is that we’re treading water: net job creation in August was basically zero. The initial June and July jobs numbers were also revised downward a bit.

However, in a reversal of last month, when the headline unemployment number went up (from 8.22% to 8.25%) even though more people were working, this month the unemployment number went down (to 8.11%) even though the jobs data was flat. This is because about half a million people dropped out of the labor force. Oddly, though, this is not because they joined the ranks of discouraged workers. In fact, the number of discouraged workers was down a bit. Long-term unemployment was also down. So there are a few small glimmers of good news here. However, when you dig below the surface of the report it mostly stays pretty bleak. Overall, it looks a lot as if net job creation has slowed to nearly nothing in the past five months.

THE END...

of our annual funding cycle is fast approaching, on June 30, and we have a considerable $230,000-plus gap in our online fundraising budget.

If you value the nonprofit journalism you get from Mother Jones, and you can, right now is an important time to help us keep charging hard with a much-needed and much-appreciated donation.

payment methods

THE END...

of our annual funding cycle is fast approaching, on June 30, and we have a considerable $230,000-plus gap in our online fundraising budget.

If you value the nonprofit journalism you get from Mother Jones, and you can, right now is an important time to help us keep charging hard with a much-needed and much-appreciated donation.

payment methods

We Recommend

Latest

Sign up for our free newsletter

Subscribe to the Mother Jones Daily to have our top stories delivered directly to your inbox.

Get our award-winning magazine

Save big on a full year of investigations, ideas, and insights.

Subscribe

Support our journalism

Help Mother Jones' reporters dig deep with a tax-deductible donation.

Donate