The net jobs figures were released today and they are bad…very, very bad. The US economy produced zero net new jobs in the month of August. That’s “0” with a capital “Z”. This is the first time since 1945 that the economy has produced zero net new jobs.
Economists had hoped for an increase of 80,000 to 90,000 net new jobs; a sign that the economy was growing but still less than the 120,000 net jobs needed each month to move the unemployment number. Unemployment stands at 9.1% with real unemployment hovering in the mid teens.
The Consumer Confidence Index dropped an additional 14.7% in August fueled for the most part by the voters’ lack of confidence that the government is capable of righting the ship.
The President is scheduled to address a joint session of Congress next week where he is expected to lay out his plans to jump start the economy and create jobs. His plan had better be a good one. The economy and his Presidency are riding on it.