Unemployment rate in the USA is decreasing

The unemployment rate in the United States of Amercia is on the lowest level since 2009. In January 2012 it reached 8,3% while in December 2011 it was still on 8,5% and in August even on 9.1%. The economic signals from the past time are now also effecting the labor market of the USA.

American companies have created 257.000 new jobs in January what is quite an acceptable figure. Also the figures oft he past two months have been corrected which led to an average of 218.000 new jobs during the last three months. Due to the growth of the population it is necessary to create 100.000 new jobs every month for these people who are joining the Labor market. But the job growth is quite higher in the last three months.

Also the monetary policy makers oft he Federal Reserve (Fed) were surprised about these latest improvements. They expected these improvements towards the end of the year. Due to this slow recovery Ben Bernanke (Chief of the Federal Reserve) also decided to retain the interest rate on nearly zero.

A reason for the improvements on the labor market in January could be a warm climate on the East coast, whereas last years winter storms occured. But seasonal work and therefore the construction sector is not only responsible for these new figures. Above all, the industry made a good impression with a job growth of 50.000 workers.

However, there are still 12,8 million unemployed people in the United States. Moreover, 43% out of these persons are more than half a year without any job. It is expected that only in 2013 the unemployment rate will fall under 8%. The big „debt crisis“ in Europe and the financial crisis in the in the own country are substantial risks for the medium-term economic prospects in the United States.

 

 

Sources:

http://www.focus.de/finanzen/news/arbeitsmarkt-arbeitslosigkeit-in-den-usa-geht-weiter-zurueck_aid_710365.html

http://www.nzz.ch/nachrichten/wirtschaft/aktuell/robuster_us-arbeitsmarkt_1.14762129.html

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4 thoughts on “Unemployment rate in the USA is decreasing

  1. It is quite shocking seeing such a high unemployment rate in the USA. Although, the government has created a lot of job within the past few years, it cannot catch up with the rising population and is therefore a significant issue.
    A big problem which the USA is also facing, is that every year a lots of immigrants from South America a coming to the country: legally working in more uneducated job positions like landscapers or mostly illegally earning their money from outlawed businesses. This has the impact that these immigrants are taking jobs away as well as contributing to the U.S.’s financial crisis and their rare job prospects in the near future.

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  2. These are very positive numbers. USA is finally getting out of the crisis-spirit thing and they are starting to invest or being supportive for unemployed people. Increase in jobs significantly exceeded analysts’ expectations, which allowed for the creation of 150,000 new jobs. These figures are according to Reuters evidence yet acceleration of economic activity in the U.S.. The Ministry, however, corrected the November unemployment rate to 8.7 percent from 8.6 percent originally reported. In October and November, according to revised data for 8000 was created fewer jobs than originally announced by the Ministry.
    The unemployment rate recorded in December for the fourth monthly decline in a row and reached the lowest level since February 2009. The average unemployment rate last year dropped to 8.9 percent from 9.6 percent. Today’s figures are good news for U.S. President Barack Obama, whose chances of re-election could depend on the state of the labor market.

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  3. Thus, the U.S. unemployment rate is at its lowest level since three years. European markets responded with price premiums. The positive figures from the job market is good news for President Barack Obama, whose approval ratings given the poor economic situation had fallen well below 50 percent. In November, Obama is re-election.

    With multi-billion dollar stimulus packages Obama and his Democrats in Congress had sought to bring the economy back on track. The political opponents on the Republican side hold high government spending, however rather cumbersome for the private sector and denounce the horrendous national debt of the United States.

    Reply

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