According to the Labor Department, just 163,000 jobs
were added to the entire U.S. economy marginally raising the year’s average to a weak 151,000 per month.
Economists estimate a sustained increase of about 250,000 jobs per month would be necessary to improve unemployment numbers for over 12 million unemployed.
The unemployment increase from 8.2 percent to 8.3
is the wrong direction and Republican presidential nominee Mitt Romney wasted no time talking about it.
"Today's increase in the unemployment rate is a hammer blow to struggling middle-class families," Romney said in a statement released Friday. Democrats will likely say that because there was an increase in jobs created, their economic policies are working. However, with the unemployment rate rising, it becomes harder to make their case.
House Speaker John Boehber added his own take on the dismal economic report: "Two years after the Obama administration declared, 'welcome to the recovery,' this much is clear," Boehner said. "With 42 consecutive months of unemployment above eight percent, the private sector still isn't 'doing fine' and President Obama's economic plan did not work," he said, as quoted in a Fox News report
Boehner is quoted by Fox News saying "any new job creation is welcome news," however unemployment over 8 percent makes it "insane to raise taxes on small businesses."
President Obama and the Democrats want to raise taxes on workers and business owners earning $250,000 or more, while Republicans want to approve all Bush tax cuts because raising taxes on business owners will cost more jobs.
Meanwhile, the Obama administration needs the cash since it has amassed a nearly $6 trillion deficit
during his presidency, far more than any other U.S. president.
July's modest job gains and the rise in unemployment three years after many financial analysts claimed an end to the recession in June 2009 do not bode well for Mr. Obama, who is tied with Mr. Romney in many polls.
GDP output crept at 1.5 percent in the second quarter. Economic growth last quarter was down from 2 percent in the first quarter and 4.1 percent in the last quarter of 2011, showing a clear pattern of weakening, according to the Fox report
President Obama has promised to make tax increases, or in other words, not approving all of the Bush tax cuts, the focus of his reelection bid.