All the confetti has fallen, the speeches are over and the nominations are set. After the Republican National Convention wrapped up last Thursday with Mitt Romney’s acceptance speech, all that was left to do was the formality of Barack Obama’s official nomination last night. Usually after the Party Conventions are over, the candidates start off their campaign season on a support high. This high was short lived for Obama however, as the August Jobs Report came out today and it did not look good.
Although 96,000 jobs were created in August, this was a disappointing number for the Obama camp since it is much lower than anticipated. Even though the official unemployment rate dropped to 8.1% from 8.3% in July, the report was still considered bad for Obama. Experts believe that the cause of the unemployment numbers drop is the fact that discouraged workers are leaving the workforce all together and therefore are no longer being counted as “unemployed”. There is certainly more to the story than just the official “unemployment rate”. The information uncovered by this report underneath the unemployment rate is what is frightening for Obama’s camp. The job hunt does not seem to be getting any easier. Ben S. Bernanke, the chairman of the Federal Reserve, delivered a forceful argument for more action last week, calling the current unemployment level a “grave concern.”
This election will be about the big issues and the economy is one of the biggest there is. This news is certainly good for the Romney camp who will be sure to mention these stats in the coming weeks. Paul Ryan, Romney’s running mate, already fired this first shot at the Obama camp on the issue when he tweeted “43 straight months of unemployment above 8%. This is not what a recovery looks like” this morning.
What does this report mean for the economy? Is it a sign of things to come? What will Obama’s next move be to try to mitigate the damages this will cause to his campaign? Is it better to look at the “unemployment rate” or the more telling numbers underneath?