Unemployment rate falls to 7.8% as economy creates 114,000 jobs
Posted in the Columbus Forum
#1 Oct 5, 2012
The nation's unemployment rate dropped to the lowest it has been in almost four years in September, giving President Barack Obama a potential upbeat talking point as the presidential race heads into the final innings.
The Labor Department reported Friday that the unemployment rate fell to 7.8 percent in September, a decline of 0.3 percentage point and the lowest since January 2009. The government said the economy created 114,000 jobs, about as expected, and generated 86,000 more jobs in July and August than first estimated.
A survey of households 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 household survey is volatile, however.
It was 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," said Ron Florance, managing director for investment strategy for Wells Fargo Private Bank.
A Reuters/Ipsos poll released on Thursday after Wednesday's first presidential debate 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.
The Congressional Budget Office has warned that a failure by Congress to avoid the automatic tax hikes and government spending cuts that will suck about $600 billion out of the economy next year would knock the economy back into recession.
"Businesses are not hiring people, they want to wait and see how the election evolves and how the political landscape shapes up," said Sung Won Sohn, an economics professor at California State University Channel Islands in Camarillo, California.
"Everyone has kind of battened down the hatches," Sohn said before the release of the report.
Persistently poor labor market conditions led the Federal Reserve in September to announce a plan to buy $40 billion worth of mortgage-backed securities each month until it sees a sustained turnaround in employment.
The central bank, which also pledged to keep overnight lending rates near zero until at least mid-2015, hopes the purchases drive down long-term borrowing costs and spur the recovery.
The Fed's ultra-easy stance has started to free up credit, giving a lift to consumers, economists said. That, in turn, helped lift retail hiring in September.
Temporary help jobs, which are often seen as a harbinger for permanent hiring, fell 2,000 after being almost flat in August.
Manufacturing payrolls fell for a second straight month.
Construction employment rose 5,000, benefiting from the rise in home construction, as demand for housing rises against the backdrop of record low mortgage rates
Government payrolls rose 10,000 after increasing 45,000 in August. Average hourly earnings rose 7 cents last month, which could support spending.
#2 Oct 5, 2012
#3 Oct 5, 2012
Mitt Romney responded quickly to the report:
"This is not what a real recovery looks like. We created fewer jobs in September than in August, and fewer jobs in August than in July, and we’ve lost over 600,000 manufacturing jobs since President Obama took office. If not for all the people who have simply dropped out of the labor force, the real unemployment rate would be closer to 11%. The results of President Obama’s failed policies are staggering – 23 million Americans struggling for work, nearly one in six living in poverty and 47 million people dependent on food stamps to feed themselves and their families...."
#4 Oct 5, 2012
I question why putting more people on false disability, more people taking SocSec early, SNAP, etc, is going to work?
#5 Oct 5, 2012
unemployment rate hits 0%
the recession is over
gas is half price since Obama took office
healthcare is reformed; and costs have been reduced by 50%
the wars are ended
gitmo is closed;
college is free to everybody
Chicago school teachers are the best in the nation
Hillary Clintoon stopped WW3 & WW4
the US dollar hits strongest value of all time
#6 Oct 5, 2012
It's not a true number, Tim. Neither was 8.1. It was more like 12%.
When worker's unemployment runs out, they take them off the roles as 'unemployed', when in fact, they have just run out of benefits and don't have a job. Or a part time job paying $7.50 an hour. That monthly number the Dept of Labor puts out means nothing.
Oh, I'm sure Obama will be spewing about it on the campaign trail. Heard him lying about the deebate today to a group in VA. Like they hadn't seen it.
If he's re-elected and cuts the military funding by trillions, and shuts down the coal mine by imposing his crippling regulations, the unemployment will be 18% to 20%. Think of the number of businesses the military and miners support in different areas. Those businesses will lose so many customers, they'll be forced to close the doors.
And we will have the weakest Air Force in history.
*You never should raise taxes on anyone during a recession or slow economy.
*The constitution calls for us to always have a strong militia. Never cut military funding.
#7 Oct 5, 2012
#8 Oct 5, 2012
#9 Oct 5, 2012
-In the history of the USAF as an independent service, Yes. Otherwise, no.
-The constitution says that the army cannot be funded for more than two years, as a defense against standing armies. Of course these days the army funding is always approved every two years.
-The navy is funded continuously as the founders approved of a strong naval arm. They did not want us engaged in overseas colonial engagements, they favored short term things like Tripoli in 1804.
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