U.S. Job Growth: Eight-Month Low, Labor Force Shrinks

U.S. employers hired the fewest number of workers in eight months in August and more Americans gave up the hunt for jobs . . .”

This Reuters article describes current employment trends and the effect it has on both the economy and the actions of the Federal Reserve.  Specifically,

• Nonfarm payrolls increased 142,000 in August after expanding by 212,000 in July.
• The jobless rate fell one-tenth of a percentage point to 6.1 percent in August.
• The lower jobless rate in August was the result of more people dropping out of the labor force and not because of an increase in working Americans.
• The Federal Reserve Board and Fed Chair Janet Yellen will use the weakness in the unemployment numbers to keep interest rates at present levels in order to provide a stimulus for the economy.

Specific information about different industry sectors, labor force participation, the number of part-time employees, etc. is also provided in this article.

For more information go to http://www.reuters.com/article/2014/09/05/us-usa-economy-idUSKBN0H008E20140905

Teaching Suggestions

You may want to use the information in this blog post and the original article to

• Reinforce how the nation’s economy can affect a person’s ability to obtain employment, develop a financial plan, and achieve both personal and financial goals.

Discussion Questions

1. Assume you are unemployed and looking for a full-time position after graduating from college.  What knowledge, skills, and experience do you have that will make an employer want to hire you?
2. What steps can you take to provide financial security if you think the economy is about to experience a recession?