"This is definitely a setback for the labor market and the economy"
- Michael Feroli, chief U.S. economist at JPMorgan Chase & Co.
U.S. unemployment rate fell to 8.1% in August, down from 8.3% in the preceding month, Labor Department figures showed on Friday. In the meanwhile, U.S. employers added only 96,000 jobs last month following a revised 141,000 rise in July that was smaller than initially predicted. Moreover, hourly earnings were unchanged.
"This is definitely a setback for the labor market and the economy," said Michael Feroli, chief U.S. economist at JPMorgan Chase & Co. in New York and former economist for the Fed.
"This clearly validates Bernanke's concern. We have Europe, the fiscal cliff, and it is a generally cautious business environment."
"The unemployment rate remains elevated, and the duration of joblessness is unprecedented for many," said Kathy Bostjancic, director of macroeconomic analysis at The Conference Board.
Stocks closed mixed on Wednesday. The Standard & Poor's 500 advanced 0.40 per cent to 1,437.92. The Dow Jones Industrial Average climbed 0.11 per cent to 13,306.64. The Nasdaq Composite added 0.02 per cent to 3,136.42.
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