November 5, 2011- A new report released by the government shows that an unexpected fall in U.S. unemployment took place during the month of October. However, the fewest new jobs were added in October in over four months. This continues to be evidence of the slow recovery taking place in the economy.
Unemployment fell to 9% to mark a six month low. The rate had been at 9.1% in September. Jobs only increased by a paltry 80,000, which was less than what analysts had forecasted. The new figures indicate the U.S. economy is working hard at weathering the risk of the current debt crisis in Europe and political battles in Washington over the deficit in the U.S. budget.
Policymakers are predicting that a moderate growth rate will not lower the nation’s unemployment rate to below 8% until sometime in 2013. Further stimulus is being considered to help spur on the economy. Because of the high amount of uncertainty, caution is being exercised by most. Unemployment will remain higher than the Fed wants because companies have decided to make do with less labor.
For a sustained period, increases of monthly jobs need to be around the 150,000 figure to lower unemployment by just a half point over a 12-month period.