5th Dec 11
US unemployment falls to 8.6 per cent
by Natasha Redman
Waiting in vain: US unemployed out of luck
Waiting in vain: US unemployed out of luck
US unemployment dropped to 8.6 per cent last month, its lowest mark since March 2009, with private employers adding jobs at a steady pace.
The government’s closely monitored non-farm payroll figures increased by 120,000 in November. Private companies drove the growth, adding 140,000 jobs. Public sector cuts resulted in 20,000 jobs being lost, revealed the US Department of Labor last Friday.
The unemployment rate dropped from nine per cent in October and will be a welcome boost for President Barack Obama as the country moves towards an election year. Recent history reveals that no president has been able to win re-election with the jobless rate as high as nine per cent.
Obama said on Friday that despite some strong headwinds in 2011, the US economy has now managed to create jobs for 21 consecutive months, adding that they must keep this growth going. He urged Congress to extend the tax holiday past 31 December, saying that now is the time to push ahead, not slam on the breaks.
The chairman of the council of economic advisers Alan Krueger said that the report provides more evidence that the economy continues to recover from the most severe downturn since the Great Depression. However, he added that the pace of improvement still isn’t quick enough.
The Department of Labor revised its figure for October to reveal a 100,000 gain from the previously reported 80,000. The figures for September were also rounded up from 158,000 to 210,000. Some industries and groups performed better than others: 50,000 jobs were added in retail, hospitality and leisure increased by 22,000, health by 17,000, and business and professional services by 33,000.
Although the president cannot be completely satisfied until a downward trend in unemployment has clearly been established, it is certainly a short-term bonus. Obama can now conceivably state that his policies are going to plan and that not extending the tax breaks could lead to a reverse in the downward trend. Krueger said that it would be a blow for the economy and US families if Congress allowed extended jobless benefits to expire at the year end.
Republicans in Congress do not want to back increased spending, but also don’t like the idea of being regarded as responsible for blocking the tax breaks. The Senate, reflecting the confusion, blocked both a Republican and Democratic tax plan, with a large number of Republicans voting in favour of killing off proposals by their own party leadership.
Negotiations are underway between Republican and Democratic leaders in Congress to reach a compromise which will enable the continuation of the tax breaks.
Our Stories
- UK retail sales down as M&S misses targets
- Sandwich labels misleading shoppers
- Unemployment drops unexpectedly but worse still to come
- Tesco store managers see annual bonuses cut
- Royal Mail: half London sorting office to be sold
- Panasonic announces £3.4bn loss
- Thomas Cook attacks government over holidays at home promotion
- Clinton Cards falls into administration
- Wet April sees high street spending fall
- Five tough years ahead for UK jobs market
- Deal struck to save Thomas Cook
- Discount battle leads to sales decline at Morrisons
Popular Topics
afghanistan al qaeda amazon Apple ASDA bank of england barack obama BBC british airways china david cameron Debenhams Egypt facebook george osborne Google India ipad iphone ivory coast japan Libya London M&S Marks & Spencer Morrisons nhs North Korea Office for National Statistics pakistan protests russia Sainsbury’s South Korea terrorism Tesco Tunisia UK UK retailers UK retail news UK shopping us Waitrose Wikileaks x factorArchive
- May 2012
- April 2012
- March 2012
- February 2012
- January 2012
- December 2011
- November 2011
- October 2011
- September 2011
- August 2011
- July 2011
- June 2011
- May 2011
- April 2011
- March 2011
- February 2011
- January 2011
- December 2010
- November 2010
- October 2010
- September 2010
- August 2010
- July 2010
- June 2010
- May 2010
- April 2010
- March 2010
- February 2010
- January 2010
- December 2009
- November 2009
- October 2009
- September 2009
- August 2009
- July 2009
- June 2009
- May 2009
- April 2009
- March 2009
- January 2009
