The
number of jobs in August was up just 1.4 percent from last year, the smallest
increase in the last two years, and down significantly from the 2 percent rate of
January. Any further slowing will be the worst since the big recession.
That
won't necessarily lead to another recession - certainly not one of that epic
scale - but the slowing of job growth in every major sector in the last few
months suggests that an easy fix is not in the works because the economic
problem is system-wide.
It's
much easier for the US economy to go into recession these days because it's
mainly a service economy. It's easy for consumers to cut back on
services if they feel a bit pinched. You need food, shelter, your car, your
phone, some clothes - but you don't need the extra latte, the extra movie, you
can put off the trip to the Rockies, you might even delay that visit to the
doctor.
Jobs
in August were up 2.4 percent in healthcare, 2.1 percent in business services,
1.9 percent at restaurants, 1.3 percent in finance and 1 percent in
manufacturing. Jobs were down in retail and almost flat in government.
Construction
jobs increased 2.3 percent, not even half the 5 percent rate of January. A
further slowing will mean that businesses are delaying new projects.
