Private Sector Labor Force Grows as Recovery Trudges On

Just ahead of the Labor Day holiday, the federal government reported a slight, but notable improvement in the labor market. New numbers released Friday show that the economy added 67,000 jobs in the private sector during the month of August.
[IMAGE] Despite growth by private employers, the national unemployment rate edged up from 9.5 percent in July to 9.6 percent in August, as the government cut 114,000 Census jobs and net payroll numbers fell by 54,000.

Nigel Gault, chief U.S. economist for the research firm ""IHS Global Insight"":http://www.ihsglobalinsight.com, said, ""Viewed in isolation, a 67,000 private payroll increase this far into the recovery is very poor. But viewed against low expectations and against fears that the economy may be tumbling into a double-dip recession,

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today's report is good news. It suggests that the recovery may be wobbly but that it is still staggering forward.""

The pool of Americans looking for jobs increased, which also helped to push the overall unemployment rate higher. But the expansion in job-seekers has an upside. Some 550,000 who had previously given up on finding work decided there were jobs out there to be had and began the hunt again.

The ""Department of Labor's latest report"":http://www.bls.gov/news.release/empsit.nr0.htm also noted a revision in June and July payrolls, up by a combined 123,000, of which 66,000 were in the private sector. IHS says with the upwardly adjustments, the three-month average private payroll increase is now 78,000; a month ago it stood at 51,000.

Gault noted that the figures take some of the pressure off the Federal Reserve to do something quickly to shore up the recovery. Last week at the annual summit of the world's central bankers in Jackson Hole, Wyoming, Fed Chairman Ben Bernanke ""pledged to act swiftly and decisively"":http://dsnews.comarticles/bernanke-promises-action-at-meeting-of-worlds-central-bankers-in-jackson-hole-2010-08-27 if the economic recovery begins to falter.

Along with the new August numbers, the Labor Department provided a more detailed explanation of the previous month’s unemployment figures by industry.

The work force for the mortgage banker/broker sector increased by 1 percent in July compared to the previous month, as firms hired 2,300 new full-time staff members.