The dismal jobs picture explains. Economist David Rosenberg called August report "horrible." So did economist and regular Progressive Radio News Hour contributor Jack Rasmus in his latest article headlined, "August Jobs Report - Worse Than Zero," saying:
Monthly, the Labor Department releases two reports:
-- the headline Establishment Report Survey (Current Employment Statistics - CES), "over-represented by large businesses," and
-- "the more accurate Current Population Survey (CPS)", also called the Household Survey.
CPS "covers small business much better than the CES," so presents a more accurate jobs picture in its details, beyond the headline number that fluctuates up and down. In most recent months, it's mostly pointed south, showing job destruction, not gains.
Until recently, large companies created modest numbers of jobs. However, "smaller businesses (are) the source of more than half of (all) created or lost."
The latest headline CES number "showed no jobs created for the month of August. Zero," confirming the dire state of America's economy on track minimally for "relapse" or considerably worse because policy measures have done more harm than good.
CPS numbers best reflect the dire picture. They includes discouraged workers who've stopped looking and others "converted from full (to) involuntary part time jobs."