Source: Bill McGuire and Susanna Kim / ABC News
The economy added a robust 163,000 jobs in July but unemployment rose to 8.3 percent as fewer people participated in the work force, the Labor Department reported Friday.
With only three months to go before the presidential election, the country is eyeing the nation’s unemployment to assess the state of the U.S. economy. The jobs report was mostly good news and stocks advanced. June’s revised report showed that employers added just 64,000 jobs that month.
“This jobs report has very mixed news ranging from a decent payroll growth number of +163k, to very disappointing numbers from the household survey,” said Stephen Bronars, chief economist with Welch Consulting. “In the household survey the unemployment rate increased from 8.2 to 8.3, the employment to population ratio fell and the participation rate fell in July. Those are all very troubling.”
Unemployment has been above 8 percent for 41 consecutive months. The Labor Department report showed that the actual number of Americans working dropped by 195,000. That means the net gain reported in July was due to seasonal adjustments.
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