It's still uncomfortably high - but unemployment rate falls to 7.8 percent
U.S. economy is able to creates 114,000 new jobs
Many would say that 7.8 percent unemployment is still too uncomfortably high - but the U.S. unemployment rate has fallen to its lowest level since January 2009, when President Barack Obama first took office. Unemployment dropped to the lowest it has been in almost four years last month, giving President Barack Obama a potential upbeat talking point as the presidential race heads into its final week.
A household survey from which the jobless rate is derived showed 873,000 job gains last month -- the most since June 1983.
A household survey from which the jobless rate is derived showed 873,000 job gains last month -- the most since June 1983. The drop in unemployment came even as Americans come back into the labor force to resume the hunt for work. The workforce had shrunk in the prior two months.
The findings are highly significant this election year, as it is the second last report before the November 6 election that pits Obama against Republican Mitt Romney.
"It's a little confusing, to be honest with you. The number of jobs created wasn't that high but the unemployment rate came down and the participation rate went up a little bit, so it's confusing. All in all, it doesn't change the trajectory of what the jobs environment has been really for the last year," Ron Florance, managing director for investment strategy for Wells Fargo Private Bank said.
The two numbers, the unemployment rate and the non-farm payrolls number come from two separate reports done by the Bureau of Labor Statistics.
The unemployment report is based on the so-called Household Survey and it measures the number of unemployed as a percentage of the labor force. The Household Survey is seen as highly volatile and many economists give it much credence. The survey includes the unemployed who are out there actively seeking work and it excludes people who have left the work force and are not applying for jobs.
The non-farm payrolls number comes from the establishment survey and is considered the more accurate of the two.
"The rule of thumb when the two surveys tell different stories is to go with what the establishment survey says. However, the household survey provides reasons to be somewhat more optimistic about job opportunities for American workers," Heidi Shierholz, an economist for the liberal-leaning Economic Policy Institute says.
A Reuters/Ipsos poll released after Wednesday's first presidential debate last week showed Romney gained ground and is now viewed positively by 51 percent of voters. Obama's favorability rating remained unchanged at 56 percent.
Economists blame the so-called fiscal cliff for the slowdown in business hiring, which has left millions of Americans working either part-time or unemployed and too discouraged to look for jobs.
© 2014 - Distributed by THE NEWS CONSORTIUM
Pope Francis Prayer Intentions for March 2014
Respect for Women: That all cultures may respect the rights and dignity of women.
Vocations: That many young people may accept the Lordís invitation to consecrate their lives to proclaiming the Gospel.
Rate This Article
Leave a Comment
More Business & Economics News
- Wowza! Restaurant starts charging diners for Obamacare
- Time banking - where time is BETTER than MONEY
- Google tops Exxon as world's second-most valuable company - for a day
- Bill Gates thinks poverty will be eliminated by 2035... But he's missing this one thing!
- World's richest playboys forgot to address the world's most serious problems between parties in Davos
- CROWDFUNDING: Brother, can you spare - funding for my new movie project?
- Here we go again! Increase the government's borrowing limit before late February, Treasury Secretary warns
- Pope Francis sends a message to Davos elites -- they'd do well to listen
- For each baby born since Obama took office, debt has increased by $1,608,304
- Fr. Paul Schenck: Finding Living Faith on Catechetical Sunday
- The Movie Yellow: Incest as 'Normal' and Cassavates's Slides Into the World of Woes
- The Chicago School Teachers Strike Reveals the Need For School Choice
- The Sexual Barbarians and the Dissolution of Culture
- The Happy Priest Challenges Us to Ask: Who is Jesus to Me?
- Michael Coren on Canadian Public Schools: Teachers, leave those kids alone
- We Cannot Ignore Our Consciences: Cardinal Dolan On Religious Liberty
- In the Face of Danger, Successor of Peter Travels to Lebanon as a Messenger of Peace
- Reflections on the Dignity and Vocation of Women: Who or What?
Disclaimer: The columns, articles, advertisers claims and any other features provided on Catholic Online Business & Economics are provided for personal finance and investment information and are not to be construed as investment advice. Under no circumstances does the information in this content represent a recommendation to buy, sell or hold any security. The views and opinions expressed in an article or column are the author's own and not necessarily those of Catholic Online and there is no implied endorsement by Catholic Online of any advice or trading strategy.