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Home arrow Issues/Politics arrow Job Talk: Unemployment rate drops unexpectedly, to 9.7 percent
Job Talk: Unemployment rate drops unexpectedly, to 9.7 percent Print E-mail
By Mary Delach Leonard, Beacon staff   
Posted 8:05 am Fri., 02.05.10

For the first time in fourmonths, the nation’s unemployment rate dropped under 10 percent -- to 9.7percent -- in January, according to the U.S. Bureau of Labor Statistics, eventhough 20,000 jobs were lost that month.

The reason for the confusing numbers?Separate bookkeeping.

According to a survey ofhouseholds, the Labor Department found that the number of employed Americanworkers rose by 541,000. The job loss number is based on a separate survey ofemployers.

Another number to note: The U.S. economy has lost 8.4 million jobs since the recession began in December 2007, according to revised figures reported Friday. The Labor Department had previously set that number at 7.2 million.

January’s 9.7 percentunemployment rate was the same as August 2009. By comparison, the nationalunemployment rate in January 2009 was 7.7 percent.

The newscame a day after the Labor Department reported that the number of U.S. workersfiling initial claims for jobless benefits last week rose by 36,000 – evidence that layoffs are continuing, and jobs remain tough to find. Those numbers caughtWall Street by surprise. The Dow Jones industrial average fell 268.37 points,or 2.6 percent, on Thursday. Analysts say the drop was also fueled by worriesover spiraling debt levels in European nations. Markets opened lower again Friday, falling to a triple-digit loss before recovering and closing the week with a slight gain.

According to numbers released earlier this week, the overall unemployment rate in the St. Louis metropolitan area held at 9.8 percent in December, with many Illinois communities registering slight increases over November and Missouri towns seeing slight decreases. You can read that story here . 

The jobless rates in both Missouri and Illinois rose by 0.2 percent in December -- to 9.6 percent in Missouri and 11.1 percent in Illinois.

Nationally, local unemployment rates were higher in 371 of 372 metropolitan areas, and budget forecasts released Monday by the White House project little improvement through the end of the year. TheElkhart-Goshen, Ind., metropolitan area was the only one to see anunemployment decrease -- to 14.8 percent, down from 16 percent.

President Barack Obama's $3.83 trillion budget request includes programs that the administration says will create jobs, but it forecasts a national unemployment rate at 9.8 percent at the end of 2010. The administration predicts the national jobless rate will drop to 8.9 percent by the end of 2011 and to 7.9 percent by the end of 2012.

 

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