This morning's employment data from BLS was a little better and worse than expected. The unemployment rate jumped to 9.7% -- a big jump up for July's 9.4%. But nonfarm payroll employment declined by only 216,000. According to the Wall Street Journal, the economists' consensus forecast had expected a 9.5% unemployment rate and a 233,000 decline in payrolls.
Of concern to me is the fact that the number of involuntary underemployed (part time for economic reasons) rose in August. While the increase was small enough for the BLS to say the situation was "little changed" (up to 9.1 million from 8.8 million in July), it is a reversal of the recent slight trend downward (see chart below). So the situation may be in that static middle ground right now as far as involuntary underemployment is concerned--not getting worse, but not yet improving. At some point soon, however, we need to see an upturn.
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