Breaking News ... July Employment Numbers Suck ... What's New?

The unemployment rate ticked up to 8.3% in July from 8.2% in June.

The broader U-6 rate ticked up to 15% from 14.9%.

The labor force participation rate declined slightly.

Not a pretty picture.

Economy Adds 163,000 Jobs says this:

"U.S. employers stepped up hiring in July as the economy continued its uneven recovery heading into this fall's presidential election.

U.S. payrolls increased by a seasonally adjusted 163,000 jobs last month, the Labor Department said Friday, but the unemployment rate, obtained by a separate survey of U.S. households, ticked up one-tenth of a percent to 8.3%.

Economists surveyed by Dow Jones Newswires expected a gain of 95,000 in payrolls and an 8.2% jobless rate.

The latest payroll numbers are encouraging after three months of weak job creation, but the figures still aren't enough to lower the unemployment rate, and hiring remains well below the pace set at the start of the year.

Republicans and Democrats are likely to seize on Friday's numbers—they offer the strongest hiring as well as the highest unemployment rate since February. . . .

June and May payroll numbers were revised with only a small net effect—June payrolls rose 64,000 compared with the initially reported 80,000, and May was up 87,000 versus an earlier estimate of 77,000.

Other recent data have pointed to a soft patch—personal spending stalled while factory orders fell in June. Both consumers and businesses appear cautious while the outlook remains unsettled.

Federal Reserve officials, at a meeting this week, held off on any new action to help the economy. But the central bank now appears poised to launch a new round of stimulus should the recovery remain weak. . . .

The Fed's policy makers next meet formally on Sept. 12 and 13. They will have an additional jobs report to scrutinize, as well as other economic data, before deciding whether to launch another major stimulus program.

The Labor Department Friday said private companies accounted for all of the growth in July payrolls, adding 172,000 jobs during the month. Governments, meanwhile, shed 9,000 positions. The federal work force shrank by 2,000.

In the private sector, professional and business services added 49,000 jobs, led by temporary help and computer systems design.

Manufacturing, a bright spot in an otherwise tepid recovery, added 25,000 jobs. The pace of factory hiring has tailed off markedly since the start of the year.

And the health-care industry added 12,000 positions. . . .

Average earnings edged up by two cents to $23.52 an hour, while the average workweek was unchanged at 34.5 hours.

A broader measure of unemployment—which includes job seekers as well as those in part-time jobs—rose to 15.0% in July from 14.9% the previous month.

Summary

We'll have more on this later as more details become available and are reviewed and analyzed.

Thanks. Bob.