“I’m very concerned about those of us who are unemployed and where are we going to find stable employment,” Hackler said. “I don’t see the economy improving anytime soon. I am concerned it could get worse.”
The Fed’s Bernanke, in an Aug. 31 speech in Jackson Hole, Wyoming, defended his unorthodox policies and laid out arguments for further easing, including additional large-scale asset purchases, known as quantitative easing.
Policy makers will give “strong hints” or provide “positive action” at the Sept. 12-13 Federal Open Market Committee meeting, said Bill Gross, who runs the world’s biggest bond fund at Pacific Investment Management Co.
The Fed will likely ease further through “open-ended” purchases of Treasuries and mortgages and extend its pledge to keep interest rates low into 2015, Gross said in a radio interview on “Bloomberg Surveillance” with Tom Keene and Ken Prewitt.
With an open-ended program, the central bank would announce a monthly amount of bond purchases that would continue until the economy’s performance meets its objectives.
Today’s report was a setback for Obama’s hopes of gaining momentum coming out of his party’s convention and gave Republican candidate Mitt Romney another campaign weapon.
“There’s almost nothing the president has 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,” Romney told reporters in Sioux City, Iowa, where his campaign plane landed.
Obama made only a passing mention of the jobs figures at his first post-convention campaign event in Portsmouth, New Hampshire.
“We know it’s not good enough,” Obama said. “We need to create more jobs, faster.”
Bloomberg survey estimates ranged from increases of 70,000 to 185,000. Revisions to prior reports subtracted a total of 41,000 jobs from payrolls in the previous two months.
Factory employment fell by the most in two years, temporary-help companies eliminated positions for the first time in five months, and the share of the working-age population in the labor force slumped to the lowest since 1981.
Private payrolls, which exclude government agencies, rose 103,000 after a revised gain of 162,000. They were projected to rise by 142,000, the survey showed.
American Axle & Manufacturing Holdings Inc., a maker of axles and crankshafts, is among companies looking to expand as the auto industry rebounds. The Detroit-based company plans to hire 400 to 500 workers at its Three Rivers, Michigan, factory over the next two years, David Tworek, a spokesman, said in an e-mail last month.
The jobless rate fell from 8.3 percent as 368,000 Americans left the labor force. Unemployment was forecast to hold at 8.3 percent, according to the survey median. Estimates in the Bloomberg survey ranged from 8.1 percent to 8.4 percent.
Factory payrolls decreased by 15,000, compared with a survey forecast for a 10,000 increase, after a 23,000 gain in the previous month. Automakers cut 7,500 jobs last month.