Unemployment Rate Drops To 7.8 Percent, Nearly 4-Year Low
- By Reuters
- Posted Oct 5th 2012 @ 8:25AM
- Filed under: Unemployment Trends and Stats, Employment News & Trends
By Lucia Mutikani
WASHINGTON, Oct 5 (Reuters) - The U.S. unemployment rate dropped to a near four-year low of 7.8 percent in September, a potential boost to President Barack Obama's re-election bid.
The Labor Department said on Friday the unemployment rate, a key focus in the race for the White House, dropped by 0.3 percentage point to its lowest point since January 2009.
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 shrank in the prior two months.
The household survey is volatile. A survey of business establishments showed employers added 114,000 jobs to their payrolls last month, a touch above economists' expectations for 113,000 jobs. Employment for July and August was revised to show 86,000 more jobs created than previous reported.
It was the second last report before the Nov. 6 election that pits Obama against Republican Mitt Romney.
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
You do want beliefs shoved down your throat?
Uh...I do! I do!
SCREW BIG BIRD! After all he's the reason for the debt to be that high. But only in the past 4 years, the 20 before that he was a money makin musheen!
Side note: Romney wants to stop funding pbs...a lot of jobs will be lost because he hates sesame st.
Ok you actually made me laugh out loud.
I recieved a lot of education at Akron U but I have still learned a lot from the ladies here, we have some very smart and highly educated women in our midst.
You continue to show a closed mind.
No one wishes to have beliefs shoved down their throat I am sure.
I'm so sorry that you chose to come here to learn....
When I said I don't want to be "educated" by the liberals in here, I meant that I don't want to have their beliefs shoved down my throat and I don't want them to try and change my mind with bs stats.
I am here primarily to learn and i believe wholeheartedly that even people who i fervently disagree with have something I can learn from them. To declare you refuse to be educated implies that you do indeed have a closed mind.
Why doesn't it surprise me that because I don't agree with you all that I'm "close-minded"?
Arent you just sunshine and flowers .
I just want to point our that beyond political affiliation there is humanity of which we are all a part which demands that we try to work together. Closed minds are not the solution.
First, I'd like to point out your signature. It just shows so much about your character.
Second, that's not the real unemployment rate and anyone and everyone who thinks it is is just plain ignorant. I think a couple other repliers are absolutely right. If there was a change in the rate, it's only due to seasonal jobs and people who have stopped looking for work.
Third, I can't believe the lefty liberal pool I just jumped into. Wow...you people will say anything to defend our sorry excuse for a President.
Fourth, let it be known that I will not accept any attempt from you (liberals) to try to "educate" me with your crap statistics.
What's f@cked up is the conservatives actually want bad job numbers. How selfish and unamerican.
I have no idea why anyone would be smiling...
Show me a 3 or 4 month significant uptick in the manufacturing sector and I might crack a grin.
Wow, what a bunch of nit-pickers...so lame. Get REAL facts and post them.
Yet you are a constant within the group.
Please, feel free to find your common sense, your facts and such else where.
People who complain about the lack of those in this group, while remaining a member, and active themselves, seems rather off some how.
Is it just for the entertainment value? I would think those who feel they are amongst lower intelligence while being in this group would realize their trolling could be seen as a lack of their own worth and intelligence.
The vast majority of people have caught on to the sham.
Look for revised figures, to be quietly released next week.
The U.S. unemployment rate dropped to a near four-year low of 7.8 percent in September, a potential boost to President Barack Obama's re-election bid.
Actually, I don't expect to see "real" numbers until after the election. They've been manipulating these numbers all along.
I know you won't comprehend this,
WE WANTED HIM TO FAIL IN HIS MARCH TO TRANSFORMATION ALLY CHANGE THE COUNTRY.
We don't hate the country as he does.
Who here gets it?
Bull. Shit. ...Hook, line and sinker. Yes, because of seasonal jobs and people who are no longer eligible for unemployment benefits. You do not find it suspicious that this is right before the election? This country is so screwed. Not because of our government, but the gullibility of the American people. Sad.
Most conservatives have said( since 2008) that they want Obama to fail, even if it means that it would hurt the country. Here is an example. You want unemployment to be high so that you can blame Obama for it ......that's really mean.If you care at all, and if you can be rational, you will be happy that there is a small improvement in the unemployment situation and a glimmer of hope. Is that so hard to do?
Did you forget that Iga has a huge comprehension problem?
That's a lie. Obama & his Admin. screwed with the numbers. It's actually 14.6%. Obama & the Labor Dept. they don't use the 'true' figures of the umemployed. Wow, shocking!! Just in time after he was CRUSHED by Romney in the debates. They don't include those that have given up looking. They don't include those that only find p/t, when they need f/t. 50% of College grads. still either can't find a job in their field or have to work in a low paying job.
Even McDonalds. 23.2M people are still looking for work. Each yr. Obama has been in office, has been worse than the previous. 2012 to going down to be worse than 2011. 2011 was worse than 2010. 2010 was worse than 2009. Sept. fewer jobs were added than Aug. Aug. was fewer jobs added than July. on & on. At this pace of Obama's, it will take us till 2025 to get back to where we were. ONLY 63.6% are working lowest since Carter. Haven't had such a bad economy since WWII. So, I'm actually shocked that people are believing in these numbers. The facts don't support this.
The economy added a meager 114000 jobs, but Obama's Labor Dept magically multiplies that to a convenient 873,000 additional workers.
You've got it. The gov't arrives at these magical figures by surveys. The companies said they only added 114,000 jobs in Sept. The 873K comes from a survey sent in by people. It could be a job that someone works at for four hours a week, or maybe really doesn't really work at all. Then you have to add on the unemployed who have run out of benefits or just stopped looking that the don't count, which really jacks up that unemployment rate to nearly 15%. There is no way 114,000 new jobs translates to 873K people getting jobs. It's all smoke and mirrors.
Hysterical. You loved the Labor Department numbers when they weren't favorable to Obama. Now you suddenly hate them. By the way, these are real people, not just numbers - shows how much you actually care about them.
Oh, by the way, Wells Fargo's chief economist, (hardly a liberal institution - slightly to the right of Attila the Hun), John Silvia, a Ph.D., has said of the report "the economy continues to grow...". In case you missed it, the key word is "continues". But you are far more educated than he is.
As usual, since you posted these completely arbitrary numbers in a public forum, I'm going to have to ask you to cite your authority for them. Please don't keep us hanging again
That's a lie.Â Obama & his Admin. screwed with the numbers.Â It's actually 14.6%.Â Obama & the Labor Dept. they don't use the 'true' figures of the umemployed.Â Wow, shocking!!Â Just in time after he was CRUSHED by Romney in the debates.Â They don't include those that have given up looking.Â They don't include those that only find p/t, when they need f/t.Â 50% of College grads. still either can't find a job in their field or have to work in a low paying job.
Â Even McDonalds.Â 23.2M people are still looking for work.Â Each yr. Obama has been in office, has been worse than the previous.Â 2012 to going down to be worse than 2011.Â 2011 was worse than 2010.Â 2010 was worse than 2009.Â Sept. fewer jobs were added than Aug. Aug. was fewer jobs added than July.Â on & on.Â At this pace of Obama's, it will take us till 2025 to get back to where we were.Â ONLY 63.6% are working lowest since Carter.Â Haven't had such a bad economy since WWII.Â So, I'm actually shocked that people are believing in these numbers.Â The facts don't support this.