Jobs: National, Local and ... Porno?

The US gained 169,000 jobs in August, something of a disappointment for those convinced that the economy was picking up steam and who expected a larger number.  This is more than the natural growth of the labor force, but not a lot more and is not significantly reducing the unemployment rate.  The rate fell to 7.3% but that drop was due to labor force drop outs as much as new jobs.

The New York Times has a nice discussion about what the Fed does now.  The common wisdom was that the Fed would wind down its stimulus efforts as the economy appeared to be transitioning to full on recovery.  Again, reports of the recessions demise are somewhat exaggerated.  What the Fed does next is a interesting question.  Those like Paul Krugman who have felt the Fed is doing too little in the face of this liquidity trap will no doubt champion even new efforts to stimulate the economy.  Those worried about sparking an inflationary episode appear to be a little off base given that the inflation we really worry about is the inflation that starts working through the labor market.

On the local scene, Mike Rogoway has a nice piece on how high-tech employment is leading the way in Oregon's job market recovery:

Mark McMulen sounds the note of caution that though this is great news there is an element of risk as many of these jobs can be a bit volatile and many are from companies that have outposts in Oregon, not HQ which makes their connection a bit tenuous.

Finally, an article from Britain's Telegraph which cheekily makes the suggestion that the 2 week work stoppage in California's massive porn industry could have caused the unemployment rate drop due to those workers temporarily leaving the labor force.

Have a good weekend.