The August jobs report pointed to weakness in the economy, even though payrolls rose 169,000 and the unemployment rate dipped to a 4 ½-year low of 7.3 percent, according to the "John Williams’ Shadow Government Statistics" newsletter.

"Given recognized margins of error, ... neither [of those statistics] was meaningful by itself," he writes. "Yet, seriously deteriorating unemployment trends have solidified."

The drop in the unemployment rate didn't result from strong hiring, Williams notes. Rather it stems from job seekers giving up and leaving the work force.

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"The broad economic outlook has not changed, although the economic downside may be picking up a little more credibility with consensus forecasters," he states.

The labor force participation rate slumped to a 35-year low of 63.2 percent last month.

"The nature of reported declines in the headline unemployment rate is symptomatic of an imploding economy," Williams proclaims.

As for payrolls, they are still 1.9 million jobs shy of the pre-recession high, he explains. And payroll gains were revised downward for June and July. "Net of prior-period revisions, the monthly [August] gain would have been 95,000," Williams claims.

"The story from the August labor data is that the economy has not recovered, that it is not about to recover and that it is turning down anew."

Another economist left unimpressed by the employment data is Peter Morici, professor of international business at the University of Maryland.

The 169,000 payroll gain is "about half of what we would need under normal circumstances, and we're not even normal in circumstances," he tells Newsmax TV in an exclusive interview.

"A good deal of those jobs, about three-fourths, were part-time positions. Essentially employers are dividing up full-time jobs and creating multiple part-time jobs."

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