Jobs Report: Unemployment Falls To 7.8%, 114,000 New Jobs Added
After a disappointing August jobs report in which only 96,000 initial jobs were created and the unemployment rate dropped from 8.3 to 8.1 percent primarily due to people leaving the workforce, the labor force has grown slightly in September. The economy added 114,000 new jobs in September and the unemployment rate has fallen to 7.8 percent. This is the first time the unemployment rate has fallen below 8 percent in 43 months and it is the lowest official unemployment rate in nearly four years.
While the unemployment rate has dropped .3 percent in one month, the broader U-6 rate remained unchanged at 14.7 percent in September.
In other positive economic news, August’s 96,000 jobs number was revised sharply upwards to 142,000 new jobs. July’s jobs report was also revised upwards from 141,000 to 181,000.
Despite the start of QE3, analysts expected job creation to remain weak in September. Analysts expected between 80,000 and 130,000 new jobs were created this month, approximately enough to keep up with population growth but not impact the number of unemployed workers. Analysts also expected the unemployment rate to tick slightly upwards to 8.2 percent.
The September jobs and unemployment report is one of the last major economic indicators to come out before the November 6 election. The October jobs and unemployment will take on added significance in light of the upcoming election.
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