Washington, DC, United States (4E) – The U.S. unemployment rate surprisingly declined to 7.8 per cent in September, the lowest rate since President Barack Obama took office in January 2009, driven by increased hiring of part-time workers.
The Labor Department announced on Friday that 114,000 new net jobs were added in September following a revised jobs gain in August to 142,000, which was was higher than the initial projection. This led to the improvement of the jobless rate from 8.1 per cent in August, as well as increased hourly earnings that is higher than estimated.
Economists projected a net gain of 113,000 new jobs and a slight rise in unemployment rate to 8.2 per cent.
The September jobs reports is the penultimate before Americans take to the polls in November 6 where they will choose between incumbent President Obama and Republican challenger Mitt Romney. The falling unemployment could lift Obama’s chances after suffering a dismal performance against Romney in this week’s first presidential debate.
Obama made reference to the falling unemployment rate in today’s report to support his message of an economy that is moving toward recovery after going through the worst recession since the Great Depression.
At a campaign rally in Virginia, the president urged voters that a lot of progress have already been made during his administration for the country to go back to policies that caused the recession in the first place.
The report itself showed some contradictions in the data with total employment level increasing despite the moderate net gain.
In a statement, Romney focused on the declining pace of hiring and noted that less and less jobs are being created every month since July. The former Massachusetts governor said that the data suggests there is no real recovery in the labor market.
Category: Macro Economics
There are no comments yet. Why not be the first to speak your mind.