Today, the Labor Department released August's unemployment numbers and for the first time since 1945, employers added no net jobs. The Labor Department also revised downward July's job's report, instead of adding 117,000 jobs as was initially reported, the economy added only 85,000 jobs.
This report by the Labor Department has ominous repercussions for the President, as the White House forecast's unemployment rates to be 9.1% at the end of the year, and will remain high through 2012.
Next week the President will address a Joint Session of Congress and announce his proposal for jump starting the stagnate U.S. economy, as well as what will be his plan for creating jobs. Both sides have been pressuring the President to do something on the job front, and after having spent close to $5 trillion dollars in just over three years, it will be interesting to see what the President proposes next Thursday.
The markets will be watching for anything different in the President's approach to job creation. If the President reiterates policies he has pursued in the past, the markets will act negatively and will reflect continued uncertainty about the future of the U.S. economy. With this, businesses will just wait until after the 2012 presidential election to assess where the economy is headed.
Unfortunately, the American people can't wait that long.
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