US Unemployment Rate Dropped in January 2010
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By :
Anna Peacocks
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US Labour Department recently announced that the unemployment rate in January 2010 had dropped from 10% to 9.7%. The figure was obtained from a survey of households. It showed that the number of American employees had rose by 541,000. This increment was unexpected yet pleasing. Many hope that more jobs will be added soon when economy gets better.
John Silvia, chief economist at Wells Fargo, analyzed that the decrement in unemployment rate was not a result of shrinking labour force. It was simply because people found jobs. And this phenomenon was perfectly consistent with the improvement in labour market.
Ever since the downturn began in December 2007, job losses have been worse than that predicted by the department. 8.4 million jobs have been taken away by the Great Recession instead of 7.2 million. This is in fact the highest job lost as per total employment since World War II. However, job loss in November was revised higher. There were a total of 64.000 jobs gained in that month which 16 times more that the expected figure. Excluding job gain in November, job losses in January were the lowest so far. This implies that employers have started to reverse course and might continue providing more jobs in future.
In addition to unemployment rate, the "underemployment" rate was also lowered. Percentage of discouraged workers was found to decline from 17.3 to 16.5. Apart from this, the part-timer's falling rate for securing a full time job had fallen.
9,000 jobs were added since the federal government started to hire workers to carry out the 2010 census. Although the jobs will be of temporary basis, it is predicted that the 1.2 million jobs could be added this year attributed to the census. However, since government employment declined by 8,000, job losses at local and state levels still overweighed job gain.
Economists explained that many employers refused to add workers because the trend of recovery remains unclear. They doubt that the recovery will continue once government fades out economic stimulus measures.
"Until some of these uncertainties from Washington get cleared up, businesses, particularly small businesses, are going to be loath to do any additional hiring," claimed Hank Smith, the chief investment officer at Haverford Investments.
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Author Resource:-
Anna has been writing articles online for nearly 3 years now. Not only she does her own research in finance, you can also check out her latest website to learn more about latest deal of plastic badge holders and plastic lanyard.
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2010-02-09 01:39:37
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