Independent Student Newspaper Since 1969

The Badger Herald

Independent Student Newspaper Since 1969

The Badger Herald

Independent Student Newspaper Since 1969

The Badger Herald

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Unemployment rate drops to 8.1 percent

Despite a falling unemployment rate and
an increase in the number of jobs, the latest national employment numbers did
not meet economists’ expectations and may have repercussions for Democratic
candidates in Wisconsin’s November elections.

According to Friday’s statement from the
United States Department Bureau of Labor Statistics, the national unemployment
rate fell from 8.3 percent to 8.1 percent and the nation added 96,000 non-farm jobs
in August. 

However, Steven Deller, a University of
Wisconsin professor of agricultural and applied economics, said that in order to
meet the demands of the population entering the workforce, the nation needed to
have economic growth about two or three times more than reported.

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Presidential Republican candidate Mitt Romney said in a statement for every new job created in
the past month, four people gave up looking for work entirely.

“If last night was the party, this
morning is the hangover,” Romney said in the statement last Friday, following
the end of the Democratic National Convention.

Secretary
of Labor Hilda L. Solis said in a statement since President Barack Obama entered office, the country has added 4.6 million jobs during the last 30 months,
pulling the economy out of a “free fall.”

Deller said the country is experiencing
a changing dynamic for job numbers, as more baby boomers hold onto their jobs
because of the recession rather than retiring, making it more difficult for those
entering the workforce to find jobs.

However, he said the country has seen
positive job growth for the past 36 months, despite not meeting job
expectations.

“It’s a recovery, and while slow and
painful, it’s still a positive trend,” Deller said.

Kenneth Mayer, UW political
science professor, said the news would not cancel out a post-convention bump in
the polls. He said he would expect Obama and the Democrats to
focus on how the unemployment rate has fallen.

However, he added that much of the drop
in unemployment may be due to people leaving the workforce and not actively
searching for employment.

In a statement, the
Republican Senate candidate and former governor Tommy Thompson said the numbers
show that Wisconsin needs to elect him, since he created 750,000 jobs
as governor while lowering taxes.

The statement also said Democratic
Senate candidate Rep. Tammy Baldwin, D-Wis., would increase taxes, government
spending and regulation on businesses.

John Kraus, Baldwin spokesperson, said
in a statement Baldwin’s priority is to help move the economic recovery forward
and create more jobs.

“Thompson would provide budget-busting
tax cuts for millionaires like himself while increasing the cost of college and
cutting investments in innovation, small business growth and rebuilding our
manufacturing,” Kraus said. “Tammy will continue her fight to cut taxes for
small businesses and end tax breaks for companies that ship Wisconsin jobs to
other countries.”

Mayer said it would be difficult for the
Republican Party to tie a specific Senator or Representative to the results of macroeconomic
policies.

However, he said Republicans might use
it to reinforce claims on the policies Baldwin supports, as well as try to
tie her in with the President’s policies.

“This is not terribly good news for the President or for the Democrats,” Mayer said.

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