Unemployment Rate Falls To 7.8%
The monthly jobs report came out Friday and it drew the attention of many people. The jobs report is how many economists predict how the markets will do and how well the economy is performing. The expected numbers were that there would be approximately 115,000 jobs created and the current unemployment rate is at 8.2%. While one number was about right, one was much different.
The actual new jobs number was 114,000. This was almost exactly what was expected. However, the unemployment rate fell to 7.8%, something that no one had expected to happen. this is the lowest the number has been since January 2009. The main reason for this was that the government revised upward employment estimates for July and August, saying that 86,000 more jobs were added in those months than initially estimated.
As many might expect, these number may be misleading says an analyst at Moody's. "The decline in the unemployment rate overstates the improvement in the labor market," he said. "There was a big increase in employment related to part-timers, who are working part-time because of economic reasons. They couldn't find a full-time job.
The numbers came not without controversy. In light of the loss at the first debate by Democratic President Barack Obama, some in the Republican party thought it was a bit too convenient. Former GE CEO Jack Welch said, "Unbelievable jobs numbers," Welch tweeted. "These Chicago guys will do anything. ... Can't debate so change numbers." Labor Secretary Hilda Solis, appearing on CNBC, called the allegation "ludicrous." I'm sure that there was no change in the numbers, but it adds more interest to the upcoming election season.