A disappointing monthly jobs report has dented US president Barack Obama’s post-convention honeymoon.
US employers added just 96,000 jobs, well below expectations, and while unemployment fell from 8.3 to 8.1 per cent, most of that was because 368,000 Americans stopped looking for work.
The number of people actively seeking jobs, and others who say they want work but are not searching, rose to 19.5 million after falling for much of the year.
The August result was a harsh wake up call for Mr Obama after the enthusiasm of the final night of the Democratic Party convention.
Speaking from New Hampshire, the president acknowledged the jobs figures were not good enough.
“We know it’s not good enough,” he said.
“We need to create more jobs faster. We need to fill the hole left by this recession faster.
“We need to come out of this crisis stronger than when we went in. And there’s a lot more that we can do.”
Barack Obama’s words are usually inspiring for ABC’s John Barron, but he thinks there was something missing in the president’s Democratic Convention speech.
Campaigning in Iowa, Republican presidential candidate Mitt Romney condemned the result, calling it “a national tragedy”.
“After the party last night, the hang over today,” he said.
“The jobs numbers were disappointing, for almost every new job created, approximately four people dropped out of the workforce.
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“Seeing that kind of report is obviously disheartening to American people that need work.
“There’s almost nothing the president’s done in the last three and a half, four years, that gives the American people confidence he knows what he’s doing when it comes to jobs and the economy.”
But Mr Obama defended his record, pointing out that Republicans in Congress had blocked much of his jobs plan.
He also accused Mr Romney of making promises to revitalise the economy but not telling voters how he would do it.
“If the Republicans are serious about being concerned about joblessness we could create one million new jobs right now, if Congress would pass the jobs plan I sent them a year ago,” Mr Obama told the rally in Portsmouth.
‘Close election’
Most economists described the weak jobs report as a setback.
And it has only added to speculation that, despite the highly charged political climate, the Federal Reserve will step in to try and stir the American economy with another round of bond buying after its meeting next week.
There are two more monthly jobs reports between now and the election and the question is whether Americans will keep faith with the president if the grim economic news keeps coming.
With 60 days to go until the election, Mr Obama is urging disillusioned voters not to give up on him.
“We can’t turn away now. You can’t buy into the cynicism the change that we fought so hard for isn’t possible. You can’t give up on the idea that your vote makes a difference because if you do give up, then the lobbyists and special interests, they’ll fill the void,” he said.
“We’re going to have to work ’cause this is going to be a close election.”
