Economic Recovery: US economy improves job figures

WASHINGTON: US unemployment dropped to its lowest since February 2009, as firms and businesses created jobs at an unprecedented rate in January, amid signs that the US economy is recovering tangibly from its deep recession. The economy added 243,000 net new jobs in broad-based gains. US stocks soared on the news as unemployment figures dropped to 8.3 per cent, driving the Dow Jones Industrial Average to its highest closing level since May 2008 and the Nasdaq to an 11-year high. The announcement also affected currency and commodity markets positively and the dollar strengthened against the yen while US crude oil futures rose against expectations of higher demand. The numbers exceeded analysts’ expectations, who had estimated that the jobless rate would hold steady at December’s 8.5 per cent rate and job creation would slow to 155,000 jobs. The jobs gains were broad-based, in professional and business services, leisure and hospitality, and manufacturing sectors, while the information, finance and clothing retailer sectors shed jobs.

Published in The Express Tribune, February 5^th, 2012.