DESPITE SPIN, JOBS REPORT IS SLUGGISH – AT 8:37 A.M. ET:  The monthly jobs report has just been issued.  Liberal news organizations are already spinning it as hopeful because the economy added 163,000 jobs in July, more than had been expected.  But the fine print tells a different story.

First, the unemployment rate rose to 8.3%.

Second, it takes 150,000 new jobs just to keep up with population growth.  So we had a real net gain of 13,000 jobs.

Third, no president in recent history has won re-election with unemployment more than 8%.

Fourth, Bloomberg reports that a jump in factory payrolls may reflect a lower-than-normal factory shutdown rate in July in the auto industry, which switches models at this time of year.  That gain will therefore be reversed in August.

Fifth, economic fundamentals remain soft.  There appears to be a softening in demand for big-ticket items. 

But the Obama administration will tout the small increase in job creation, even though the median job creation this year is no higher than it was last year.

The unemployment rate increase will be used by Republicans to counter any Dem argument.

August 3,  2012