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US Jobless Rate Falls to Lowest In 3 Years: Republican Nightmare

Unemployment Drops to 8.3%; Payrolls in U.S. Jump 243,000

By Bob Willis
-

Feb 3, 2012 1:53 PM GMT


Employment climbed more than forecast
in January and the U.S. jobless rate unexpectedly fell to the
lowest in three years, casting doubt on the Federal Reserve’s
pledge to keep interest rates low until late 2014.
The 243,000 increase in payrolls was the most since April
and exceeded all forecasts in a Bloomberg News survey, Labor
Department figures showed in Washington. The unemployment rate
dropped to 8.3 percent, the lowest since February 2009.
Stock futures and bond yields jumped as the report fueled
optimism the economy is weathering the European debt crisis. The
data may boost President Barack Obama’s re-election bid and come
one week after Fed Chairman Ben S. Bernanke said the economy
wasn’t growing fast enough to push unemployment lower.
“Further Fed stimulus is probably limited at this point,”
said John Silvia, chief economist at Wells Fargo Securities LLC
in Charlotte, North Carolina. “The drop in the unemployment
rate has to be very, very positive from the Fed’s point of
view.”
The contract on the Standard & Poor’s 500 Index expiring in
March rose 0.9 percent to 1,334.0 at 8:47 a.m. in New York. The
yield on the benchmark 10-year Treasury note climbed to 1.91
percent from 1.82 percent late yesterday.
The median projection in the Bloomberg survey called for a
rise of 140,000 payrolls after an initially reported 200,000
gain in December. Estimates of the 89 economists ranged from
increases of 95,000 to 225,000. Revisions added a total of
60,000 jobs to payrolls in November and December. The Labor
Department revised December’s gain to 203,000.
Broad-Based Gains
The gains in employment were broad-based, including
manufacturing, construction, temporary help agencies, accounting
firms, restaurants and retailers. The number of industries
showing job gains climbed to 64.1 in January from 62.4 a month
earlier.
Factory workers put in an average 41.9 hours of work each
week, the most since January 1998, while overtime hours climbed
to the highest since March 2007. Manufacturing payrolls
increased by 50,000 in January, the most in a year.
The unemployment rate, derived from a separate survey of
households, was forecast to hold at 8.5 percent, according to
the survey median. The drop in the jobless rate reflected a
381,000 decrease in unemployment at the same time 250,000
Americans entered the labor force.
Private Payrolls
Private payrolls, which exclude government agencies, rose
257,000 in January after a revised gain of 220,000 the prior
month, marking the biggest back-to-back gain since March-April.
It was projected to climb by 160,000.
Peoria, Illinois-based Caterpillar Inc. (CAT), the world’s
biggest maker of earthmoving equipment, plans to increase
employment this year as it expands facilities, including in
Victoria, Texas, and Winston-Salem, North Carolina, Chief
Financial Officer Edward Rapp said yesterday.
“Those are the things that will lead to employment growth
here,” Rapp said in an interview with Betty Liu on Bloomberg
Television’s “In the Loop.”
Employment at service-providers increased 162,000, the most
in four months and reflecting faster job gains in retail,
transportation and leisure and hospitality.
Tibco Software Inc. (TIBX) plans to hire 500 people in the U.S.
this year as the economy improves and Europe works out its debt
crisis, Vivek Ranadive, chief executive officer of the Palo
Alto, California-based company said in an interview.
Hiring ‘Rapidly’
“We are hiring quite rapidly now, all in sales and
service,” Ranadive said last week at the World Economic Forum’s
annual conference in Davos, Switzerland. “It’s a good time to
hire.”
Construction companies added 21,000 workers last month.
Government payrolls decreased by 14,000 in January, reflecting
cuts at the federal and local levels.
Average hourly earnings rose 0.2 percent to $23.29, today’s
report showed. The average work week for all workers held at
34.5 hours.
The so-called underemployment rate -- which includes part-
time workers who’d prefer a full-time position and people who
want work but have given up looking -- decreased to 15.1 percent
from 15.2 percent.
The Fed said on Jan. 25 after a two-day meeting that it
would keep its benchmark lending rate low “at least” until
late 2014 from a prior target of mid-2013.
Bernanke on Employment
“We still have a long way to go before the labor market
can be said to be operating normally,” Bernanke told the House
Budget Committee in Washington yesterday. “Fortunately, over
the past few months, indicators of spending, production and job-
market activity have shown some signs of improvement.”
With today’s jobs report, the government issued its annual
benchmark update, aligning the data with corporate tax records
covering the period from April 2010 to March 2011. The Labor
Department added 165,000 to the job count over the period.
The report also included methodology changes to the
household survey, incorporating new population data from the
decennial census, according to the Labor Department.
It also included changes to the figures used to adjust the
data for seasonal swings affecting numbers back to January 2007.
To contact the reporter on this story:
Bob Willis in Washington at
[url=mailto:bwillis@bloomberg.net]bwillis@bloomberg.net[/url]
To contact the editor responsible for this story:
Christopher Wellisz in Washington at
[url=mailto:cwellisz@bloomberg.net]cwellisz@bloomberg.net[/url]
http://www.bloomberg.com/news/2012-02-03/payrolls-in-u-s-jumped-243-000-in-january-unemployment-rate-drops-to-8-3-.html


Added: Feb-3-2012 
By: ElegantDecline
In:
World News
Tags: US, Back, On, Feet, Sour, Grapes, Republicans
Location: Washington, District of Columbia, United States (load item map)
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  • 1.2 million people have dropped out of the labor force, about 115,000 of the new jobs are low wage jobs. The actual unemployment rate is closer to 10%. Far from out of the woods and certainly not something to crow about. The nightmare is still President Obama's.

    Posted Feb-3-2012 By 

    (11) | Report

    • @migs1955 Your middle-class is dying...and you're losing lots of good jobs to others...but that's been happening for years

      I reckon you'd need State capitalism and coercion of the private sector to have a chance of fixing that problem (offshoring etc)

      Posted Feb-3-2012 By 

      (-2) | Report

    • @ElegantDecline Oh, sure it didn't start with the current President. My real beef is his slight of hand. Even if the unemployment figures were accurate he spent $5.3 trillion to get us to all of 8.3%. God help us, this is going to be a rough ride.

      Posted Feb-3-2012 By 

      (0) | Report

  • It's only going to get worse, a lot worse, until the problem (0bama) loses his job, and returns to sucking cok for a living like he did in college..

    Posted Feb-3-2012 By 

    (9) | Report

  • LMAO, 1/10th of 1% now equals a republican nightmare? ? Really??

    Posted Feb-3-2012 By 

    (9) | Report

  • too little, too late.

    Posted Feb-3-2012 By 

    (9) | Report

  • LMAO @ this poster

    Posted Feb-3-2012 By 

    (7) | Report

  • This poster obviously has about as much understanding of these unemployment numbers as do the slobbering left wing cultists that elected this fool!

    There are not more people being hired...just more people GIVING UP the look for work.

    We call them parasites.

    Posted Feb-3-2012 By 

    (6) | Report

  • And 8.3% is good?!?! LMAO!

    Posted Feb-3-2012 By 

    (6) | Report

  • I highly doubt the accuracy of any such occurrence of the unemployment rate, even if certain companies are reporting hiring a few hundred people when we have many thousands out of work. Holiday seasons always bolster employment and the we always seem to forget that unemployment is a record of those seeking employment. We can have ZERO unemployment this month if everybody just stopped looking all at once and would be an accurate figure upon its own definition.

    Posted Feb-3-2012 By 

    (6) | Report

  • Lies, damn lies, and then there are statistics.

    A respect of the truth might have lead someone to notice that
    Record 1.2 Million People Fall Out Of Labor Force In One Month, Labor Force Participation Rate Tumbles To Fresh 30 Year Low
    http://www.zerohedge.com/news/record-12-million-people-fall-out-labor-force-one-month-labor-force-participation-rate-tumbles-

    The way the unemployment rate is calculated, it is possible to have a negative unemployment rate. To be unemployed you have to be defined More..

    Posted Feb-3-2012 By 

    (5) | Report

    • @Yukon6400 America's and the world's investors disagree...the Dow Jones has had its best start to a year in a couple of decades, and is at its highest since Bush left office

      People believe in the US economy at this point...yup, the same one that's had Obama at the helm for nearly four years

      The hatred in America and political divide is hilarious to watch though, I ask where's the honor?

      Posted Feb-3-2012 By 

      (0) | Report

    • @ElegantDecline "Dow Jones has had its best start to a year in a couple of decades, and is at its highest since Bush left office"

      Do you know the difference between nominal and real gains?

      Bernanke said his goal in inflating the money supply was to prop up housing and stock prices. This does not mean their *value* went up, just that their *price* has gone up.

      People expect their measuring stick - the dollar - to be a stable standard of measurement over time. Look at what happened t More..

      Posted Feb-3-2012 By 

      (2) | Report

    • @Yukon6400 The rise in Equities globally this year, particularly in the last few weeks can be attributed to earnings more than anything else...this week alone something like 111 out of the 173 Earnings reports beat estimates...that is a fantastic testament to the resilience of the US business sector...bottom line is they're making more money than everybody thought they would
      They're now starting to hire again as well, durable goods orders (long-term investment you don't take lightly) are up
      Peo More..

      Posted Feb-3-2012 By 

      (0) | Report

    • @ElegantDecline "One wonders if the Americans have got what it takes to follow the Europeans into austerity and real spending-cuts..."

      I don't think so. There is an entitlement mentality here that would prevent that, or atleast lead to riots when they did cut back. We can't keep this level of spending up unless everyone is willing to live with a much lower standard of living.

      I hope you are right about the earnings and recovery though.

      Posted Feb-3-2012 By 

      (1) | Report

  • in other news: more people with doctorates are flipping burgers at McDonalds than ever before.

    Posted Feb-3-2012 By 

    (4) | Report

    • Comment of user 'rclark951' has been deleted by author (after account deletion)!
  • Comment of user 'vtxphantom' has been deleted by author (after account deletion)!
  • Comment of user 'buoymarker' has been deleted by author (after account deletion)!
    • @buoymarker Sorry to hear that...the last quarter in particular has been shit...everywhere, even China

      But things are turning...

      Its got bugger all to do with Obama, but I like posting it to bring out all the US Conservatives who personally blame him if someone pissed in their cheerios...

      Posted Feb-3-2012 By 

      (0) | Report

  • Hahahaha, really? wait til the Feb & March report!!
    Holiday work layoffs will be complete, the unemployed soldiers will be back (which is a crying shame for the brave folks) and with the phenomenal work on the green companies that went bankrupt in the last couple of weeks the unemployment #'s will BOOM!! Keep trying, keep crying, keep lying..cause in November ...well the people will stand, vote and make a course correction for this country!

    Posted Feb-3-2012 By 

    (4) | Report

  • Shell games for the uninformed. Meanwhile, participation in the labor force is at a 30 year low.

    Posted Feb-3-2012 By 

    (3) | Report

  • What a load of crap!! The numbers will be revised downward quietly in a few weeks,when no one is paying attention. He has been doing that for 3 years now. It is just playing with the numbers.

    Posted Feb-3-2012 By 

    (3) | Report

    • @555chevy LOOOL!, I can see him now, personally adjusting the employment figures!

      Posted Feb-3-2012 By 

      (1) | Report

    • @ElegantDecline The labor dept. does it for him. They deduct people that their unemployment benefits have run out. They have what is called "Seasonally adjusted"employment for farm workers,which is nothing more then a wild a$$ guess,that you can make anything you want it to be. The unemployment in this country is 17% to 20% and they can try to hide it but too many people know the truth. He is doing this to fool the people that don't pay attention and are too lazy to look around them,th More..

      Posted Feb-4-2012 By 

      (0) | Report

  • Record 1.2 Million People Fall Out Of Labor Force In One Month, Labor Force Participation Rate Tumbles To Fresh 30 Year Low

    http://www.zerohedge.com/news/record-12-million-people-fall-out-labor-force-one-month-labor-force-participation-rate-tumbles-

    Posted Feb-3-2012 By 

    (3) | Report

  • Comment of user 'MB-UK' has been deleted by author (after account deletion)!
  • more bullshit from liberal media

    Posted Feb-3-2012 By 

    (3) | Report

  • The REAL unemployment figure, what is called U6, is 15.1%. And many economists add percentage points to the U6 to counter bias in data reporting, which obviously doesn't collect homeless and other marginalized potential workers (like the BITB -- boys in the basement).

    U6 definition -

    The U6 unemployment rate counts not only people without work seeking full-time employment (the more familiar U-3 rate), but also counts "marginally attached workers and those working part-time for economic re More..

    Posted Feb-3-2012 By 

    (3) | Report

  • All bullshit lies.

    Posted Feb-3-2012 By 

    (2) | Report

  • Did anyone ever have any doubts that the unemployment numbers would miraculously come down steadily right before the election? Like many have said on this post, real unemployment (U6) is around 16% and the reason the numbers are any better is that so many people are losing their unemployment benefits and are no longer being counted by the trumped up U3 number.

    Posted Feb-3-2012 By 

    (2) | Report

  • 8.3% unemployment does not win elections, nor does it account for all those people that have simply run out of benefits. Obama will go down as the worst President of all time. There is not one economic indicator that he didn't make worse, he single handed ballooned the deficit by over 50%, under his leadership the Democrats have refused to pass a budget the entire time he was in office.
    That's just the tip of the iceberg of Obama's failures. I could go on all day.

    Only a complete idiot would More..

    Posted Feb-3-2012 By 

    (2) | Report

  • Couldn't really care less who wins...but you've got to love this shit happening now

    Going to make great theater...

    Posted Feb-3-2012 By 

    (1) | Report

    • @ElegantDecline According to Obama's own numbers, unemployment should have fallen below 6% by this time. It was supposed to be under 7% WITHOUT a recovery plan.

      http://sheya.com/wp-content/uploads/2011/04/Stimulus-Unemployment-Graph.gif

      Posted Feb-3-2012 By 

      (6) | Report

    • @ElegantDecline

      There are two ways a president can reduce the unemployment rate.
      One is to make the economy so good anyone who wants a job can find one.
      The other is to make the economy so bad people quit looking for work.

      Posted Feb-3-2012 By 

      (4) | Report

    • @migs1955 Ha ha, I've always doubted a President can really do anything to effect job growth, but I like that any way :)

      Posted Feb-3-2012 By 

      (0) | Report

    • Semantics, he'll be ending his first term with less unemployment than the Republicans left the US with...

      Posted Feb-3-2012 By 

      (0) | Report

    • @ElegantDecline Well, whether these numbers are good or bad for either party, I'll always wonder if His American Recovery and Reinvestment Act did more harm than good in terms of unemployment.

      Posted Feb-3-2012 By 

      (1) | Report

  • what bs. total employment in US is down to 63%, the lowest ever.

    Posted Feb-3-2012 By 

    (1) | Report

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