A New Year Surprise: Jobless Rate Plunges to 9%

jobs reportThe unemployment rate dropped sharply last month to 9 percent, based on a government survey that found that more than a half-million people found work.

A separate survey of company payrolls showed a scant increase of 36,000 net jobs as snowstorms likely hampered hiring. That survey doesn't count the self-employed.

Harsh snowstorms last month cut into construction employment, which fell by 32,000, the most since May. Transportation and warehousing was also likely affected and fell by 38,000 - the most in a year.

"The thumbprints of the weather were all over this report," said Neil Dutta, an economist at Bank of America Merrill Lynch. Hiring was suppressed last month and will likely rebound in February, he said.

In one bright spot, manufacturing added 49,000 jobs, the most since August 1998. And retailers added 28,000 jobs, the largest number in a year.

The unemployment rate has fallen by eight-tenths of a percentage point in the past two months. That's the steepest two-month drop in nearly 53 years.

But part of that drop has occurred as many of those out of work gave up on their job searches. When unemployed people stop looking for jobs, the government no longer counts them as unemployed.

The number of people unemployed fell by more than 600,000 in January to 13.9 million. That's still about double the total that were out of work before the recession began in December 2007.

In early trading on Wall Street, the Dow Jones industrial average rose 15 points, or 0.1 percent, to 12,075. The S&P 500 gained 2 to 1,309. The Nasdaq composite index added 5 to 2,759.

Fewer New Jobs in 2010 Than Thought

The January jobs report also includes the government's annual revisions to the employment data, which showed that fewer jobs were created in 2010 than previously thought. All told, about 950,000 net new jobs were added last year, down from a previous estimate of 1.1 million. The economy lost about 8 million jobs in 2008 and 2009. In the past three months, the economy generated an average of 83,000 net jobs per month. That's not enough to keep up with population growth.

The weakness in hiring was widespread. Restaurants and hotels cut 2,200 jobs. Governments shed 14,000 positions. And temporary help agencies eliminated 11,000 jobs. Financial services lost 10,000 positions.

Education and health care services, one of the few steady job generators through the downturn, added 13,000 jobs, the fewest in almost two years. Financial services lost 10,000 jobs.


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luvtopleaze

Plunges ????? How much did Obama pay the AP to make up this falacious article ? How stupid does he think we are ?

February 10 2011 at 6:14 PM Report abuse +1 rate up rate down Reply
sweepsplay1

WHERE HAS THE AMERICAN ENTREPRENEURIAL SPIRIT GONE TO???? IT SEEMS THAT THE ONLY REASON SOME PEOPLE POST ON HERE IS TO COMPLAIN. DON'T YOU KNOW THAT YOU HOLD YOUR FUTURE IN YOUR HANDS? NO ONE OTHER THAN YOU CONTROLS WHAT YOU WILL DO WITH YOUR LIFE OR WHAT YOU WILL BECOME!

My wife was fired from her job mid 2008. I was fired from my job Jan 3, 2009. Of course the first few weeks were a shock and I was on the verge of falling into depression. I pulled myself out of bed one morning with the realization that I really have the opportunity of a lifetime! I have the time to do what I really wanted and enough money coming in to stay afloat while I chased my dreams.

1st I wanted to get into shape. I went for a run and was able to go almost 1/2 mile straight. I kept running and got up to about 3 miles but realized I would never accomplish "getting into shape" unless I set a goal and did whatever it took to achieve it. I decided to set the high goal of running a full 26.2 mile marathon, even though I haven't ever ran a race longer than a 1/2 mile track meet in high school almost 20 years ago. I completed my 1st marathon on Oct. 24th, 2009.

2nd I wanted to start my own business. I had a construction background and little investment money. I decided to go with a sweepstakes directory. I entered some before with some success and thought with as bad as the economy is, I bet a lot of people are looking for a way to get some extra money themselves. A few thousands bucks later my website SweepsPlay went live. I had to go back to work because it doesn't make enough to support us yet, but it is growing. Hopefully in the next year or so my wife and I can be home together again and spend time doing what we love without the stresses of money on our shoulders.

My point is that if you have lost your job, it is tough. I know, I have been there. Just keep your head up. It could be the best thing that ever happened if you take advantage of the opportunity. If you still have your job, prepare for the time you may not have it anymore. Good luck..

February 08 2011 at 1:45 AM Report abuse +1 rate up rate down Reply
Mark

Regrettably this is misinformation, as the true unemployment rate is still over 18%. But there is a real cure to lowering the high unemployment rate and truly fixing our sick economy!
The "One - Year Mortgage Holiday" 9 Point Economic Recovery & Jobs Plan as fully detailed at www.saveoureconomy.com is indeed the silver bullet solution to solve the current housing, credit, banking, financial crises, that will immediately jump start our economy, create millions of new Jobs, stimulate growth and generate long term economic prosperity through out America! The Mortgage Holiday Plan is the bold, ingenious ultimate "Trickle Up" stimulus plan that will help all home owners, renters and small/medium businesses that will actually work to stabilize the housing market and get America's economic wheel of commerce rolling again, which will also help balance the Federal budget and help start reducing the National Debt, which will strengthen the American dollar.

The Mortgage Holiday is a fair and balanced legitimate stimulus plan, Of, By and For the People, Main Street that empowers We The People, allowing us to have a well deserved one year time out from making our monthly mortgage payment, so that we can decide how best to save, spend & invest our own money. Renters of apartments, office & retail space will also receive a monthly savings and partial rebate in rent.

If you should agree, then we urge you to speak out in support of the "One - Year Mortgage Holiday" 9 Point Economic Recovery & Jobs Plan, that is supported by a majority of American's across the country, that actually take the time to simply read the Plan at www.saveoureconomy.com!

February 07 2011 at 7:52 PM Report abuse +1 rate up rate down Reply
vcgh2000

The jobless rate plunges because more people are not counted as unemployed....along with the CPI, the press dutifully reports all these phony Government Statistics....How many people REALLY believe this?

February 06 2011 at 8:50 PM Report abuse +5 rate up rate down Reply
B INSANE OBOZO

jobless rate PLUNGES to.... are you kidding me? Look at the real numbers. More folks have fallen off the unemployment roles.... This is more smoke and mirrors.

February 06 2011 at 12:15 PM Report abuse +7 rate up rate down Reply
1 reply to B INSANE OBOZO's comment
BobaLou

Righteous friend. After you factor in the underemployed and those who have fallen off the books unemployment is at least 18%

February 09 2011 at 9:46 PM Report abuse rate up rate down Reply
ha6ai

"Plunge"? Funny, since that is obviously a lie. Someone wants us to think that Obama is doing a good job. That is also obviously a lie. The reality is that this "statistic" is a lie. There are more people joining the job market than there are new jobs. The "plunge" is because HUGE numbers of people are no longer receiving unemployment and/or have stopped looking for work. A "liberal" lie.

February 06 2011 at 2:51 AM Report abuse +11 rate up rate down Reply
Sam Das

Since when has the statistical numbers have spoken the truth and nothing but the truth, it is more like lie, damn lie and statistics. All these numbers are bogus. If you have a job the world is 100% employed and if you don't have a job the world is 100% unemployed.

February 06 2011 at 12:00 AM Report abuse +9 rate up rate down Reply
socialeconomics1

This unemployment rate is nothing more than a survey of 50,000 homes...... the real unemployment numbers can be found in the u6 unemployment report..... which is at 27%

February 05 2011 at 7:51 PM Report abuse +10 rate up rate down Reply
krhoovler

DUH!!! Christmas and PART-TIME jobs! The media loves this administration and we'll be like Egypt before you know it!

February 05 2011 at 7:06 PM Report abuse +6 rate up rate down Reply
palyzuc

Is this same report going to be a headline every other day or every other week ?

February 05 2011 at 4:56 PM Report abuse +6 rate up rate down Reply