For the first time in nearly 2 years, the United States unemployment rate dropped to 9%. That’s a 0.4% drop from the 9.4% level in January. The unemployment rate was able to drop despite tepid job growth numbers. Here is a breakdown of the statistics.
Unemployment Rate Drops To 9%
- 36,000 total jobs were added in the month of January
- 50,000 private sector jobs were added
- 14,000 state and federal government jobs were lost (12,000 state and local, 2,000 federal)
- 30,000+ manufacturing jobs were added
- Average work week hours were down to 34.2 from 34.3 hours
- Hourly earnings rose to $22.86 from $22.78
This unemployment can be interpreted as either positive or negative. I think it is good that the rate is declining from the near double digit levels that it was at last fall. This should lead to increased consumer confidence and increased spending. A low unemployment rate means a great market for stock investing. If the number can get down to between 7.5% and 8%, the recovery will be in full swing.
The only negative is the low job growth totals. This could signal that a lot of unemployed people have given up on trying to find jobs. The unemployment rate only accounts for people 16 and older that are actively seeking employment.
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