August's unemployment report is worse than the big fat zero in job growth. People being forced into part-time jobs skyrocketed by 430,000 in a month, to a tally of 8,826,000 people. That's a 5.12% monthly jump. People in part-time jobs due to slack work conditions increased 146,000, or 2.5%.

Labor Department announced today that productivity of U.S. workers rose 6.4% in the second quarter of 2009. Productivity is measured by output per hours of workers. The largest increase since the third quarter of 2003.

Here is the kicker:

The huge increase was due to hours working declined faster than output.

Oh, wait there is more:

Hourly compensation in the nonfarm business sector increased 0.2 percent in the second quarter of 2009, compared to a decrease of 2.4 percent one quarter earlier. When the 1.3 percent rise in consumer prices was taken into account, real hourly compensation fell 1.1 percent in the second quarter of 2009 (seasonally adjusted annual rates).

So, wages are not even competing up with inflation.

We have the productivity-wage gap growing. We have hours worked falling. We have real hour compensation decling.

This all translate to more destruction of the middle class and more income inequality. Our economic growth model is broken, as Dr. Palley argues, and this report is just another example of that.

I am adding these quotes from this news story because, in my opinion, show the total disregard for the survival of the middle class:

"It's good because it helps keep inflation low; labor costs are pretty benign," said Scott Brown, chief economist at Raymond James & Associates in St. Petersburg, Florida.