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Friday, September 7, 2012

Economy Adds Fewer Jobs Than Expected: 368,000 Drop Out Of Workforce

WASHINGTON—U.S. job growth slowed in August, a sign of a slack recovery that could slow any postconvention momentum for President Barack Obama and spur the Federal Reserve to take further steps in an effort to stimulate the economy.

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U.S. payrolls increased by a seasonally adjusted 96,000 jobs last month, the Labor Department said Friday. The politically important unemployment rate, obtained by a separate survey of U.S. households, fell to 8.1% from 8.3%, mainly because of more people dropping out of the work force.

Economists surveyed by Dow Jones Newswires expected a gain of 125,000 in payrolls and an 8.3% jobless rate.

Wall Street Journal

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