There’s good news and bad news The unemployment Rate dramatically to 9% But 36,000 found employment. From AP via Yahoo News:
– The unemployment rate is suddenly sinking at the fastest pace in a half-century, falling to 9 percent from 9.8 percent in just two months — the most encouraging sign for the job market since the recession ended.
More than half a million people found work in January. A government survey found weak hiring by big companies. But more people appear to be working for themselves or finding jobs at small businesses.
The steepest two-month decline in unemployment since the Eisenhower administration is the latest sign that the economic recovery is picking up speed.
The service sector and manufacturing are growing again at pre-recession rates. The Dow Jones industrial average closed above 12,000 this week for the first time since mid-2008. And retail sales have reached a five-year high.
“It is not all rosy. But we seem to be headed in the right direction,” said economist Chris Rupkey at Bank of Tokyo-Mitsubishi. “The recovery is on track — warts and all.”
Yields on government bonds rose after the unemployment report came out, a sign that bond traders think the job market is improving and will lift the economy after a year and a half of only modest growth.
An unemployment rate of 9 percent remains very high by historical standards. But the swift decline in the rate could also lift confidence at a time when businesses and individuals are already spending more money, fueling more hiring and still-more spending.
Unemployment has not been this low since April 2009.
But Gallup,Inc. says in their surveys the real unemployment rate is 9.9%:
Gallup’s U.S. employment measures report the percentage of U.S. adults in the workforce, ages 18 and older, who are underemployed and unemployed, without seasonal adjustment. “Underemployed” respondents are employed part time, but want to work full time, or they are unemployed. “Unemployed” respondents are those within the underemployed group who are not employed, even for one hour a week, but are available and looking for work. Results for each 30-day rolling average are based on telephone interviews with approximately 30,000 adults. Because results are not seasonally adjusted, they are not directly comparable to numbers reported by the U.S. Bureau of Labor Statistics, which are based on workers 16 and older. Margin of error is ± 0.7 percentage points.