News / USA

Poor US Job Numbers Play Key Factor in Presidential Race

Poor US Job Numbers Play Key Factor in Presidential Racei
|| 0:00:00
X
Mil Arcega
September 08, 2012 3:25 AM
The U.S. economy added just 96,000 jobs in August, fewer than economists were expecting. The jobless rate fell from 8.3 to 8.1 percent - but only because more Americans stopped looking for work. Financial analysts say the latest job numbers could play a big role in the coming presidential elections. But as Mil Arcega reports, economic factors outside the United States, however, also may be at play.

Poor US Job Numbers Play Key Factor in Presidential Race

WASHINGTON — The U.S. economy added just 96,000 jobs in August, fewer than economists were expecting. The jobless rate fell from 8.3 to 8.1 percent - but only because more Americans stopped looking for work. Financial analysts say the latest job numbers could play a big role in the coming presidential elections. Economic factors outside the United States, however, also may be at play.

The August job numbers mark the 30th month of private-sector job growth, though just barely. Experts say the economy needs to add at least 100,000 new jobs each month just to keep up with population growth.  

Economist Marcus Schomer at Pinebridge Investments called the latest jobs report underwhelming.

"The non-farm payroll number 96,000, that was quite disappointing. I was looking for a much stronger increase. In fact, my forecast was 175,000," said Schomer.

So what happened? Schomer believes the job numbers reflect growing uncertainty over the country's economic direction.  

"It is the uncertainty over taxes, the uncertainty over spending, the uncertainty over politics, the uncertainty over Congress and I think that's exactly what's holding back business activity, business sentiment and at the end of the day, it's holding back hiring," said Schomer.

With less than nine weeks to go before Americans head to the polls, the sluggish job market could hurt President Barack Obama's re-election chances.

Michael K. Farr is head of an investment firm in Washington and has written several books on surviving the economic downturn. He said the latest job numbers could be problematic for the president.

"It's crucial politically, it's less crucial economically. I think, you can look back and there have been no presidents re-elected when unemployment's north of [above] 8% [since World War II], so for President Obama, this is a very tricky detail," said Farr.

External factors also could play an outsized role in whether companies hire workers. Farr said a downturn in Europe - the United States' largest trading partner - may hurt the president.

"Europe is a huge threat right now. The euro and the survival of the euro in what are insolvent, sovereign economies. It's hard to call Europe a surprise, but it could be the October problem," said Farr.

The unemployment rate has remained above 8 percent since February 2009, a fact Republican presidential candidate Mitt Romney argues is reason for Americans to choose a new leader.  

But in accepting his nomination for a second term, Obama asked for more time. And on Friday, he reminded Americans that his policies have added 4.6 million private-sector jobs - following the worst economic downturn since the Great Depression.

You May Like

Ebola Death Toll Nears 5,000 as Virus Advances

West Africa bears heaviest burden; Mali toddler’s death raises new fears More

Jordan’s Battle With Islamic State Militants Carries Domestic Risks

There are Western concerns Islamic State militants soon may unleash offensive in kingdom that could create upheaval - though nation has solid intel, grip on banking system More

Asian-Americans Assume Office in Record Numbers

Steadily deepening engagement in local politics pays off for politicians like Chinese-American Judy Chu More

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
After Decades of Pressure, Luxembourg Drops Bank Secrecy Rulesi
X
October 21, 2014 12:20 AM
European Union finance ministers have reached a breakthrough agreement that will make it more difficult for tax cheats to hide their money. The new legislation, which had been blocked for years by countries with a reputation as tax havens, was approved last week after Luxembourg and Austria agreed to lift their vetoes. But as Mil Arcega reports, it doesn’t mean tax cheats have run out of places to keep their money hidden.
Video

Video After Decades of Pressure, Luxembourg Drops Bank Secrecy Rules

European Union finance ministers have reached a breakthrough agreement that will make it more difficult for tax cheats to hide their money. The new legislation, which had been blocked for years by countries with a reputation as tax havens, was approved last week after Luxembourg and Austria agreed to lift their vetoes. But as Mil Arcega reports, it doesn’t mean tax cheats have run out of places to keep their money hidden.
Video

Video Kobani Refugees Welcome, Turkey Criticizes, US Airdrop

Residents of Kobani in northern Syria have welcomed the airdrop of weapons, ammunition and medicine to Kurdish militia who are resisting the seizure of their city by Islamic State militants. The Turkish government, however, has criticized the operation. VOA’s Scott Bobb reports from southeastern Turkey, across the border from Kobani.
Video

Video China Political Meeting Seeks to Improve Rule of Law

China’s communist leaders will host a top level political meeting this week, called the Fourth Plenum, and for the first time in the party’s history, rule of law will be a key item on the agenda. Analysts and Chinese media reports say the meetings could see the approval of long-awaited measures aimed at giving courts more independence and include steps to enhance an already aggressive and high-reaching anti-corruption drive. VOA’s Bill Ide has more from Beijing.
Video

Video US ‘Death Cafes’ Put Focus on the Finale

In contemporary America, death usually is a topic to be avoided. But the growing “death café” movement encourages people to discuss their fears and desires about their final moments. VOA’s Jerome Socolovsky reports.
Video

Video Ebola Orphanage Opens in Sierra Leone

Sierra Leone's first Ebola orphanage has opened in the Kailahun district. Hundreds of children orphaned since the beginning of the Ebola outbreak face stigma and rejection with nobody to care for them. Adam Bailes reports for VOA about a new interim care center that's aimed at helping the growing number of children affected by Ebola.
Video

Video Young Nairobi Tech Innovator on 'Track' in Security Business

A 24-year-old technology innovator in Nairobi has invented a tracking device that monitors and secures cars. He has also come up with what he claims is the most robust audio-visual surveillance system yet. As Lenny Ruvaga reports from the Kenyan capital, his innovations are offering alternative security solutions.
Video

Video Latinas Converting to Islam for Identity, Structure

Latinos are one of the fastest growing groups in the Muslim religion. According to the Pew Research Center, about 6 percent of American Muslims are Latino. And a little more than half of new converts are female. VOA’s Carolyn Presutti travelled to Miami, Florida -- where two out of every three residents is Hispanic -- to learn more.
Video

Video Exclusive: American Joins Kurds' Anti-IS Fight

The United States and other Western nations have expressed alarm about their citizens joining Islamic State forces in Syria and Iraq. In a rare counterpoint to the phenomenon, an American has taken up arms with the militants' Syrian Kurdish opponents. Elizabeth Arrott has more in this exclusive profile by VOA Kurdish reporter Zana Omer in Ras al Ayn, Syria.
Video

Video South Korea Confronts Violence Within Military Ranks

Every able-bodied South Korean male between 18 and 35 must serve for 21 to 36 months in the country’s armed forces, depending upon the specific branch. For many, service is a rite of passage to manhood. But there are growing concerns that bullying and violence come along with the tradition. Reporter Jason Strother has more from Seoul.
Video

Video North Carolina Emerges as Key Election Battleground

U.S. congressional midterm elections will be held on November 4th and most political analysts give Republicans an excellent chance to win a majority in the U.S. Senate, which Democrats now control. So what are the issues driving voters in this congressional election year? VOA National Correspondent Jim Malone traveled to North Carolina, one of the most politically competitive states in the country, to find out.
Video

Video Comanche People Maintain Pride in Their Heritage

The Comanche (Indian nation) once were called the “Lords of the Plains,” with an empire that included half the land area of current day Texas, large parts of Oklahoma, New Mexico, Kansas and Colorado.The fierceness and battle prowess of these warriors on horseback delayed the settlement of most of West Texas for four decades. VOA’s Greg Flakus reports from Lawton, Oklahoma, that while their warrior days are over, the 15,000 members of the Comanche Nation remain a proud people.
Video

Video Turkey Campus Attacks Raise Islamic Radicalization Fears

Concerns are growing in Turkey of Islamic radicalization at some universities, after clashes between supporters of the jihadist group Islamic State (IS) or ISIS, and those opposed to the extremists. Pro-jihadist literature is on sale openly on the streets of Istanbul. Critics accuse the government of turning a blind eye to radicalism at home, while Kurds accuse the president of supporting IS - a charge strongly denied. Henry Ridgwell reports from London.

All About America

AppleAndroid