The Bureau of Labor Statistics frumped up President BarackObama's convention glow Friday when it released disappointingemployment figures for August.

According to a BLS release, total nonfarm payroll employmentrose by 96,000, enough to lower the unemployment rate to 8.1%, butthe gain was off pace from the year's monthly average of $139,000new jobs. In 2011, the average monthly job gain was 153,000.

The BLS also revised June and July's employment figures downward, erasing 41,000jobs that were previously reported as gains.

“On the surface, the decline in the nation's unemployment rateover the past year appears encouraging. However, the underlyingdata tells a different story,” said Brian Turner, director and chief strategist of CatalystStrategic Solutions in Plano, Texas.

While the U.S. population has increased by 3.7 million over thepast 12 months, the labor force has only increased by 971,000,Turner said, because nearly 2.7 million workers were removed fromthe labor force. At the same time, the number of employed hasincreased by 2.3 million since August 2011. The combination ofthose factors has resulted in a lower labor force participationrate despite the reduction of the unemployment rate from 9.1% to8.1%.

Employment rose in food services and drinking places,professional and technical services, and health care. According toBLS data, the financial services sector, which includes lendinginstitutions, mortgage brokers, clearinghouse and reserve services,check cashers and payday lenders, experienced a 3.7% employment gain inAugust.

However, depository credit providers saw a 1.1% employmentdecline, with the commercial banking subset taking a 1.6% hit.

The long-term unemployed, who have been jobless for 27 weeks ormore, held steady at 5 million. These individuals accounted for 40%of the total unemployed.

The overall size of civilian labor force – 154.6 million –declined in August, as did the labor force participation rate of63.5%. The 8 million involuntary part-time workers remained thesame.

There were 844,000 discouraged workers in August, a decline of133,000 from a year earlier. Average hourly earnings decreased by 1cent to $23.52. September's employment statistics are scheduled tobe released Friday, Oct. 5.