In July, 92,000 new jobs were created, according to the employment report, released Friday by the Bureau of Labor Statistics (BLS). Generally, about 150,000 new jobs are needed each month to keep the economy stable, so this was of concern.

Also worrying was the slight increase in the unemployment rate which edged up to 4.6%. However, this remains in the same range it has been in since September 2006.

Year-over-year employment looks even more bleak.

1. Jobs increased by only 1.4%, the weakest job growth since 2004.
2. Of even more concern is that manufacturing jobs have been steadily declining since last October. in July, there were 1.2% fewer manufacturing jobs than the year before.

Manufacturing jobs are a good leading indicator of overall economic performance, since they produce big-ticket items that consumers will put off buying when the economy starts to weaken. As the orders decline, manufacturers will hire less workers, and even lay off existing workers to keep costs low. (Source: BLS, Employment Situation Summary)

What This Means for You

Lower year-over-year employment growth means less income to fuel consumer purchases, which is 70% of the U.S. economy. Over the long haul, this will cause the economy to continue its softening trend. Now would be a good time to defer new large purchases, and pay down debt -- just in case. The next employment report will be released September 7, so check back then.

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