The initial buying was set off when the Labor Department said the U.S. unemployment rate had dropped to 7.8% in September, its lowest level since 2009. September payrolls grew by 114,000, the department said, a touch below the consensus estimate of 120,000 jobs. But estimates for payroll growth in July and August grew by 86,000, suggesting that the summer slowdown wasn't as bad as thought.
The news of the falling unemployment rate cheered the White House, reeling from President Obama's performance in Wednesday's debate against Mitt Romney. It dismayed Republicans. "This is not what a real recovery looks like," Romney said in a statement. Former General Electric (GE +0.74%) CEO Jack Welch went so far as to accuse the Labor Department of cooking the numbers. Labor Secretary Hilda Solis said she was "insulted" by the idea.
The unemployment rate is derived from a telephone survey of about 50,000 households (often called the "household survey").
Most economists had expected the rate to rise to 8.2%. It fell because the number of workers estimated to be working rose by 873,000, the biggest gain since June 1983. The number of unemployed fell by 456,000.
The number is famously volatile, in part because it includes people who are self-employed. It is not clear how it will be revised in the next two months. The report -- like many government reports -- is revised twice after its initial release to reflect the inclusion of more data.
Still, the household survey suggests that unemployment fell among just about all groups the Labor Department tracks. The alternative unemployment measure, which amalgamates those unemployed with those not looking for work or taking part-time work, was unchanged from August at 14.7% but was down from 15% in July and 16.4% a year ago.
The payroll gains weren't nearly so gaudy and probably reflect the economy more clearly. Private-sector employment grew by 104,000. But that gain reflects the upward revisions in July and August.
The biggest gains came in the education component of state government. There were also gains in health care, transportation and professional and business services.
Manufacturing declined, including automobile manufacturing. Construction employment grew by 5,000.
Residential construction employment at 564,800 was up 1,100 as evidence builds of a small but real housing recovery. But that's still down 457,200 from the peak of the housing boom in April 2006.
Two other areas cheered economists: The average workweek increased to 34.5 hours from 34.4 hours last month, and the average hourly earnings rose 7 cents to $23.58.
***
WASHINGTON—The U.S. unemployment rate fell to its lowest level in more than 3½ years in September as the economy continued to add jobs, a potential boost for President Barack Obama's campaign to win a second term.
The politically important unemployment rate fell to 7.8% last month from 8.1% in August. That was the lowest level since January 2009.
[coincidence?]
Nevertheless, the Republican Party today stressed that a 7.8 percent unemployment rate is hardly something to brag about."This is not what a real recovery looks like," Mitt Romney said in a statement.
"The choice in this election is clear. Under President Obama, we'll get another four years like the last four years," he said. "If I'm elected, we will have a real recovery with pro-growth policies that will create 12 million new jobs and rising incomes for everyone."
***
Romney provides few specifics to back up his claim. And a white paper by his economic advisers shows that it would mean growth of between 200,000 and 300,000 jobs per month, less than the 500,000 Romney has said would occur monthly during a "normal recovery.
***
As he has been saying for months, Mitt Romney, during Wednesday's presidential debate, promised to create 12 million jobs during his first term in the White House. Of course, as with his pledge to close loopholes and deductions to offset his $5 trillion tax cut plan, Romney was silent about how he'll actually do it. Worse still, most economists predict Romney's draconian budget cuts will cost hundreds of thousands of jobs, especially in his first two years on office.
As it turns out, Romney's secret plan to prime the job pump is a simple one: do nothing. As it turns out, Romney's lofty goal of 12 million new jobs over four years is what the Congressional Budget Office and other analysts have already been forecasting for the U.S. economy.
*** [ah, here's what I was looking for..]
Former General Electric Chief Executive Jack Welch charged Friday that the White House manipulated the sharp drop in the unemployment rate to help President Obama's reelection campaign.
Minutes after the Bureau of Labor Statistics reported that the September unemployment rate had surprisingly plunged to 7.8% from 8.1%, Welch took to Twitter to say that the numbers were cooked to give Obama a boost following what many analysts said was a poor debate performance on Wednesday.
"Unbelievable jobs numbers..these Chicago guys will do anything..can't debate so change number," Welch tweeted.
Former White House economic aide Austan Goolsbee responded that Welch didn't know what he was talking about. "love ya jack but here you've lost your mind," Goolsbee tweeted.
***
Jack Welch on Kudlow
Romney provides few specifics to back up his claim. And a white paper by his economic advisers shows that it would mean growth of between 200,000 and 300,000 jobs per month, less than the 500,000 Romney has said would occur monthly during a "normal recovery.
***
As he has been saying for months, Mitt Romney, during Wednesday's presidential debate, promised to create 12 million jobs during his first term in the White House. Of course, as with his pledge to close loopholes and deductions to offset his $5 trillion tax cut plan, Romney was silent about how he'll actually do it. Worse still, most economists predict Romney's draconian budget cuts will cost hundreds of thousands of jobs, especially in his first two years on office.
As it turns out, Romney's secret plan to prime the job pump is a simple one: do nothing. As it turns out, Romney's lofty goal of 12 million new jobs over four years is what the Congressional Budget Office and other analysts have already been forecasting for the U.S. economy.
*** [ah, here's what I was looking for..]
Former General Electric Chief Executive Jack Welch charged Friday that the White House manipulated the sharp drop in the unemployment rate to help President Obama's reelection campaign.
Minutes after the Bureau of Labor Statistics reported that the September unemployment rate had surprisingly plunged to 7.8% from 8.1%, Welch took to Twitter to say that the numbers were cooked to give Obama a boost following what many analysts said was a poor debate performance on Wednesday.
"Unbelievable jobs numbers..these Chicago guys will do anything..can't debate so change number," Welch tweeted.
Former White House economic aide Austan Goolsbee responded that Welch didn't know what he was talking about. "love ya jack but here you've lost your mind," Goolsbee tweeted.
***
Jack Welch on Kudlow
No comments:
Post a Comment