U.S. employers add no net jobs in August

Employers stopped adding jobs in August, an alarming setback for an economy that has struggled to grow and might be at risk of another recession. It was the weakest jobs report since September 2010. The unemployment rate remained at 9.1%. Stock futures plunged on the news. In the 15 minutes after the report was released, Dow futures fell 94 points, from 11,401 to 11,318. A strike by 45,000 Verizon workers lowered the job totals. Those workers are now back on the job. The weakness in employment was underscored by revisions to the jobs data for June and July. Collectively, those figures were lowered to show 57,000 fewer jobs added. The downward revisions were all in government jobs. The average workweek also declined, and hourly earnings fell by 3 cents to $23.09. The report may dampen expectations for the economy to pick up in the second half of the year. With hiring stagnant and wages declining, consumers won’t see much gain in incomes. That will limit their ability to spend, which undercuts economic growth. Consumer spending accounts for much of the activity in the economy. The economy needs to add roughly 250,000 jobs a month to rapidly bring down the unemployment rate, which has been above 9% in all but two months since May 2009. In August, the private sector added 17,000 jobs, the fewest since February 2010. That compares with 156,000 in July and 75,000 in June.