Unemployment Rate Drops To 7.8 Percent, Nearly 4-Year Low

unemployment stats jobs report

By Lucia Mutikani

WASHINGTON -- The U.S. unemployment rate dropped to a near four-year low of 7.8 percent in September, a potential boost to President Barack Obama's re-election bid.

The Labor Department said on Friday that the unemployment rate, a key focus in the race for the White House, dropped by 0.3 percentage point to its lowest point since January 2009.

A survey of households from which the jobless rate is derived showed 873,000 job gains last month, the most since June 1983. The drop in unemployment came even as Americans moved back into the labor force to resume the hunt for work. The workforce had shrunk in the prior two months.

The household survey is volatile. A survey of business establishments showed employers added 114,000 jobs to their payrolls last month, a touch above economists' expectations for 113,000 jobs. Employment for July and August was revised to show 86,000 more jobs created than previous reported.

It was the second-to-last report before the Nov. 6 election that pits Obama against Republican Mitt Romney.

A Reuters/Ipsos poll released on Thursday after Wednesday's first presidential debate showed that Romney gained ground and is now viewed positively by 51 percent of voters. Obama's favorability rating remained unchanged at 56 percent.

Persistently poor labor market conditions led the Federal Reserve in September to announce a plan to buy $40 billion worth of mortgage-backed securities each month until it sees a sustained turnaround in employment.

The central bank, which also pledged to keep overnight lending rates near zero until at least mid-2015, hopes the purchases drive down long-term borrowing costs and spur the recovery.

The Fed's ultra-easy stance has started to free up credit, giving a lift to consumers, economists said. That, in turn, helped lift retail hiring in September.

Temporary help jobs, which are often seen as a harbinger for permanent hiring, fell 2,000 after being almost flat in August.

Manufacturing payrolls fell for a second straight month.

Construction employment rose 5,000, benefiting from the rise in home construction, as demand for housing rises against the backdrop of record low mortgage rates

Government payrolls rose 10,000 after increasing 45,000 in August. Average hourly earnings rose 7 cents last month, which could support spending.

Economists have blamed the so-called fiscal cliff for a recent slowdown in business hiring, which has left millions of Americans working either part-time or unemployed and too discouraged to look for jobs.

The Congressional Budget Office has warned that a failure by Congress to avoid the automatic tax hikes and government spending cuts that will suck about $600 billion out of the economy next year would knock the economy back into recession.

"Businesses are not hiring people, they want to wait and see how the election evolves and how the political landscape shapes up," said Sung Won Sohn, an economics professor at California State University Channel Islands in Camarillo, Calif. "Everyone has kind of battened down the hatches," Sohn said before the release of the report.

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US Jobless Rate Falls to 7.8 Pct., 44-Month Low

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If anyone was smart enough to understand there were 90,000.000 people were dumped off of unemployment over night with no word at all. They have not received there checks for 2 months> They are told to go to the bank of American for there checks. Still no word. If you do not know about this go to the unemployment blog and hear all of the pain these people are going through with out there unemployment money. The most of the 90,000.000 were in California.

October 17 2012 at 4:54 PM Report abuse rate up rate down Reply

This is such an insult to those who are struggling to find any job, let alone one that pays a living wage!!! Please dont diminish the seriousness of the job situation!!!!

October 09 2012 at 8:47 PM Report abuse rate up rate down Reply

And pigs are flying.......

October 09 2012 at 6:04 PM Report abuse rate up rate down Reply

Based on arithmathic, this number can be generated, however, the number is false. The true unemployment rate is well above 10%. Our government has continued to be untruthful too us. Those of us who are unemployed know that this 7.8% number is a political ploy to draw votes for President Obama. Too little too late Mr. O. You are on the way out and most middle class Americans are very happy about this.

October 09 2012 at 10:39 AM Report abuse +1 rate up rate down Reply

The Lies are endless with this President.. CNN and MSNBC are helping deliver the lies to the American people. I dont know if Romney is the cure all but 4 more years of this Liar can not be good for us... unless we are now living in fantasy land LOL...

October 09 2012 at 9:59 AM Report abuse +2 rate up rate down Reply

The fact that American Citizens do not have JOBS, is due to BOTH Parties! They BOTH - PASSED - NAFTA - Looked the other way while the American Citizens, saw their JOBS leave this country. All those who voted for NAFTA and made it possible for JOBS to leave this country, should be HOUNDED OUT OF OFFICE! Since American Citizens Have Lost Their Jobs So Should All Those Who Voted For Nafta!! Has anybody heard any Politician Complain that they could not pay their bills, have lost their home, did not have health insurance, could not pay for their childrens education and oh yes, how many months vacation they get, all paid for by the American Tax Payers. Things will not change till, the President and members of Congress, are forced to pay into Social Security, have the same "Obama Care" that they have forced on the American People and only get a increase in salary when those on Social Security receive a increase and in the same amount. These people go to Washington, D.C. and become Multi Millionaires - Look at the Clintons, Harry Reid, Nancy Pelosi and on and on! This is not one Party, It Is BOTH Parties!! Heard that Harry Reid is worth over ONE - HUNDRED - MILLION - DOLLARS - John Kerry another one of those Multi Millionaires, Tried To Get Away With Not Paying Taxes On A Boat, By Having It Sent To Another State - Till He Was - CAUGHT!! There is No Honesty In D.C.!!!!

October 09 2012 at 9:16 AM Report abuse +2 rate up rate down Reply
Bob Benson

7.8% is a Myth. Those numbers are totally manipulated. True Unemployment is in excess of 10%.

October 09 2012 at 7:26 AM Report abuse +3 rate up rate down Reply

This number is derived by calling households. It has nothing to do with reality. Looks good to the uneducated voter though. Our government only tells us what they want us t hear, Not the truth though!

October 08 2012 at 3:51 PM Report abuse +2 rate up rate down Reply

the american people who believe in our country are not falling for these bogus numbers. we now see how this administration have decieved us and understand there devious ways. they biggest mistake the 52% of the people did 4 years ago will not happen again. remember in november are the boggest 3 word phrase to get our country back on the right track....vote for america---vote romney/ryan......................

October 08 2012 at 10:32 AM Report abuse +5 rate up rate down Reply

When the Czars that Obama hired are terminated in January the rate will be 9%. But the spending and waste will be cut by 50%.

Make the deal voters!!!!!

October 08 2012 at 9:32 AM Report abuse +6 rate up rate down Reply

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