Chart of the Day: Net New Jobs in August

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The August jobs report is out, and it doesn’t have much good news. My usual monthly jobs chart is below: since the economy needs about 90,000 new jobs just to keep up with population growth, I subtract 90,000 from the raw jobs figures to show net new job creation. And what this shows is that we’re treading water: net job creation in August was basically zero. The initial June and July jobs numbers were also revised downward a bit.

However, in a reversal of last month, when the headline unemployment number went up (from 8.22% to 8.25%) even though more people were working, this month the unemployment number went down (to 8.11%) even though the jobs data was flat. This is because about half a million people dropped out of the labor force. Oddly, though, this is not because they joined the ranks of discouraged workers. In fact, the number of discouraged workers was down a bit. Long-term unemployment was also down. So there are a few small glimmers of good news here. However, when you dig below the surface of the report it mostly stays pretty bleak. Overall, it looks a lot as if net job creation has slowed to nearly nothing in the past five months.

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We didn't know what to expect when we told you we needed to raise $400,000 before our fiscal year closed on June 30, and we're thrilled to report that our incredible community of readers contributed some $415,000 to help us keep charging as hard as we can during this crazy year.

You just sent an incredible message: that quality journalism doesn't have to answer to advertisers, billionaires, or hedge funds; that newsrooms can eke out an existence thanks primarily to the generosity of its readers. That's so powerful. Especially during what's been called a "media extinction event" when those looking to make a profit from the news pull back, the Mother Jones community steps in.

The months and years ahead won't be easy. Far from it. But there's no one we'd rather face the big challenges with than you, our committed and passionate readers, and our team of fearless reporters who show up every day.

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