Unemployment Rate at Five-Year High

Today, the Department of Labor released its employment report for August showing a loss of another 84,000 American jobs, and an unemployment rate that climbed to 6.1 percent -- the highest since September 2003. The economy has lost jobs for eight straight months, with a total of 605,000 American jobs lost this year.

The State of the Bush Economy

The unemployment rate climbed to 6.1 percent -- the highest level in nearly five years (September 2003).

America has suffered an eighth straight month of job losses -- 84,000 in August -- totaling 605,000 so far this year.

The number of Americans looking for work climbed to 9.4 million in August -- the highest number since December 1992. Nearly one in five (1.8 million) of those looking for work have been jobless for six months or more.

Average hourly earnings continue to fail to keep pace with inflation -- up only 3.6 percent over the last year. Rising prices have pushed inflation up to 5.6 percent over the past 12 months.

Food prices have risen at an annualized rate of 8 percent over the last three months.

The American people are working harder, but making less even in the face of rising costs of health care, energy, and education. Since 2000, worker productivity is up, but the purchasing power of the typical working age family's income is down by more than $2,000. As a result, 5.7 million more Americans are living in poverty and 7.2 million more Americans are without health care than in 2000.

Retail gas prices are at $3.68 a gallon -- more than double that of 2001 -- after peaking at $4.11 in July. Diesel prices remain high at $4.12 a gallon, more than two times the cost in 2001. In July, the price of a barrel of oil reached a new record of $147 per barrel, more than four times when Bush took office (today it is at $106). And heating costs are expected to reach record levels this winter.

Meanwhile, oil companies continue to report record profits, with Exxon Mobil posting the largest quarterly profits for an American company in history of nearly $12 billion in the 2nd quarter. Profits of the big five oil companies are projected to be more than $160 billion this year.

Speaker Pelosi on the Department of Labor report:

The economic policies of President Bush and the Republicans have delivered another blow to American families, as 84,000 more workers lost their jobs last month alone. Today, more than 9 million Americans are without work and millions more are struggling with the high cost of gas, health care and groceries, yet John McCain told Americans who are out of work or who just lost their jobs that another four years of the same failed Bush economic policies are the right solution for them and for America.

With the unemployment rate at a five-year high, it is clear that we must take immediate action to strengthen our economy. The New Direction Congress will soon act on a second economic stimulus package and a comprehensive energy plan that will create new American jobs, invest in renewables, increase domestic production, make America more energy independent, and break free of the failed Bush economic policies that John McCain and Republicans in Congress have rubber-stamped for far too long.

Hard-working Americans deserve economic policies that reward their efforts, strengthen their families, and keep the American Dream alive; that is what Democrats are committed to delivering.

Chairman George Miller:

Today's news is yet another reminder that American workers continue to pay the price for eight years of President Bush's economic policies. Already this year, more than 600,000 workers have lost their jobs, joining more than nine million Americans that are desperately looking for work. As separate data released yesterday shows, workers are now working harder for less. In today's rough economy, this isn't just bad news -- its frightening news for the millions of workers who are working longer hours, taking on second and third jobs, and retiring later in life in order to make ends meet.

In light of this administration's failed economic policies -- giving huge tax cuts to the wealthy and hoping it trickles down -- we need a new economic stimulus package that will create new jobs for workers and help strengthen middle class families. In June, the Democratic Congress took an important step by approving a much-needed extension of unemployment insurance to help out-of-work Americans.

Republicans in Congress should immediately drop their opposition to another economic stimulus and join us in working to provide additional, much-needed relief for workers.

Most economists agree that our nation's turbulent economic times are not over. The combination of high energy costs, rising food prices, the housing crisis, and stagnant wages will continue to put stress on Americans' pocketbooks. Despite all this, the Republican presidential ticket has failed to show any real grasp of how the ailing economy is hurting families -- let alone offer any proposals for fixing it. After eight years of Bush economic policies and eight straight months of job losses, the last thing Americans need and want is more of the same -- but it's clear that's exactly what the Republicans have to offer.

American workers and families deserve much, much better. For starters we need an administration that will once again treat workers with dignity and respect, and that believes that hard work should be rewarded with fair wages, benefits, and working conditions. We need an administration that understands the financial hardships facing families, and that has an economic plan for how to address them. And we need a President who will work for -- not against -- the interests of our workers.