US in jobs boost as unemployment rate dips
Non farm payrolls in the US rose by 243,000 in January meaning a jobless rate at 8.3 per cent – the lowest since February 2009.
The key data is seen as one of the indicators of the state of the country’s economic recovery.
The jobless rate fell to 8.3 per cent – the lowest since February 2009 – from 8.5 per cent in December.
The gain in employment was the largest since April and it could lessen the likelihood of further action from the Federal Reserve to spur a stronger recovery.
The payroll gains were widespread – from retail to temporary help, and from construction to manufacturing.
A survey of households showed the unemployment rate declined even as new job seekers flooded into the labor force. Economists had expected the jobless rate, which has now fallen 0.8 percentgage point since August, to hold steady.
“The report was much better than expected in terms of indicating fundamental strength in the economy,” said Pierre Ellis, senior economist at Decision Economics in New York.
U.S. stocks opened higher on the report, while U.S. Treasury debt prices fell sharply. The dollar rose against the yen.