US job growth rises to 9-month high as unemployment drops
Source: Agencies |
February 4, 2012, Saturday
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Print Edition
Print Edition
THE US economy created jobs at the fastest pace in nine months in January, and the unemployment rate dropped to a near three-year low of 8.3 percent, indicating last quarter's growth carried into early 2012.
Nonfarm payrolls jumped 243,000, the US Labor Department said yesterday, the most since April and beating economists' expectations for a gain of only 150,000.
Economists had expected the jobless rate to hold steady at 8.5 percent. The rate has dropped 0.8 percentage point since August.
The decline last month reflected large gains in employment in the separate household survey from which the unemployment rate is derived. Meanwhile, fewer people left the labor force.
Job gains last month were widespread, with even the transportation and warehousing sector increasing payrolls.
The tenor of the report was further strengthened by revisions to November and December payrolls data, which showed 60,000 more jobs created than previously reported.
In addition, average hourly earnings rose 4 cents, which should help to support spending. The report suggested that expectations of a slowdown in US economic growth in the first quarter were not yet impacting on companies' hiring decisions.
The continued labor market improvement could be a relief for US President Barack Obama who faces a tough re-election. The US Federal Reserve last week said it would probably hold interest rates near zero at least through 2014, citing still-high unemployment.
Chairman Ben Bernanke said the Fed was mulling further purchases to speed up the recovery, but the last employment numbers could cause policymakers to step back. The US central bank has already bought US$2.3 trillion in bonds to keep rates low and spur the economy.
Employment in the private sector surged 257,000 - the largest gain since April. Government payrolls fell 14,000, the least amount since September.
The US economy grew 2.8 percent in the final three months of 2011, against 1.8 percent in the third quarter.
Nonfarm payrolls jumped 243,000, the US Labor Department said yesterday, the most since April and beating economists' expectations for a gain of only 150,000.
Economists had expected the jobless rate to hold steady at 8.5 percent. The rate has dropped 0.8 percentage point since August.
The decline last month reflected large gains in employment in the separate household survey from which the unemployment rate is derived. Meanwhile, fewer people left the labor force.
Job gains last month were widespread, with even the transportation and warehousing sector increasing payrolls.
The tenor of the report was further strengthened by revisions to November and December payrolls data, which showed 60,000 more jobs created than previously reported.
In addition, average hourly earnings rose 4 cents, which should help to support spending. The report suggested that expectations of a slowdown in US economic growth in the first quarter were not yet impacting on companies' hiring decisions.
The continued labor market improvement could be a relief for US President Barack Obama who faces a tough re-election. The US Federal Reserve last week said it would probably hold interest rates near zero at least through 2014, citing still-high unemployment.
Chairman Ben Bernanke said the Fed was mulling further purchases to speed up the recovery, but the last employment numbers could cause policymakers to step back. The US central bank has already bought US$2.3 trillion in bonds to keep rates low and spur the economy.
Employment in the private sector surged 257,000 - the largest gain since April. Government payrolls fell 14,000, the least amount since September.
The US economy grew 2.8 percent in the final three months of 2011, against 1.8 percent in the third quarter.
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