Much will be made of the unemployment rate's jump to 6.1% and of the 84,000 reduction in jobs, but here's another bit:

Job losses at all private employers -- not including government -- came to 101,000 in August.

Some simple math--I didn't even need "The Diff"--indicates government employment expanded by 17,000 jobs. Maybe the private employment situation would be a bit rosier if taxes (explicit or deficit financed) regulations, and the bureaucrats that enforce them stopped increasing.