The economy fared better in July than it did in June. 117,000 jobs were added in July as opposed to only 18,000 in June. Also, the unemployment rate inched down one tenth of one percent from 9.2 percent in June to 9.1 percent in July.
In order to substantially reduce unemployment 250,000 jobs a month would be need to be added to bring the unemployment rate down quickly. As you can see, we are nowhere near that level.
In August we will have to wait and see if the reduction of the U.S.credit rating and Thursday’s stock market plunge will have an adverse effect on job creation and unemployment.