Comment on U.S. Bureau of Labor Statistics Employment Situation Report: Kathy Bostjancic, Director of Macroeconomic Analysis, The Conference Board

Labor Market Remains Moribund

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Sep 07, 2012, 09:05 ET

NEW YORK, Sept. 7, 2012 /PRNewswire/ -- The meager 96,000 job gain in August, after a downwardly revised gain of 141,000 in July, reflects a labor market that remains slow in a disappointingly weak economy. Consumer anxiety about how much longer this may continue is reflected in weak sentiment and slow buying. Lack of demand together with concern about declining profits makes it difficult to generate new jobs at a faster pace. Companies are focused on squeezing more productivity gains out of existing workers and keeping a tight lid on labor costs. As a result, the unemployment rate remains elevated, and the duration of joblessness is unprecedented for many. These conditions could easily stretch into the early months of 2013. Currently, the economy has no forward momentum, with risks from the European crisis and the fiscal cliff, and little help from monetary or fiscal policy.

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