The U.S. economy added 243,000 jobs in January, considerably higher than the 150,000 expected. The new jobs figures also dropped the unemployment rate to 8.3%. The new figures, of course, do not include the 2.8 Million Americans, who have dropped out of the workforce and are no longer looking for work. In contrast the Canadian economy has added only 2,300 jobs, fewer than expected, edging the unemployment rate to 7.6%. As a consequence of today’s U.S. job figures the markets should do extremely well.
long term unemployed or 5.5 million. The Labor Department also revised November’s job figures from 100,000 to 157,000 jobs created.
The jobless rate, which sits now at 8.3% is the same as it was in February 2009, the first full month of the Obama Administration. Broken down further, the rate for adult men is 7.7%, blacks 13.6%, adult women 7.7%, teenagers 23.2% and Hispanics 10.5%.
Despite the good job figures, the Congressional Budget Office issued an economic forecast preview on Wednesday, which showed concerns over America’s $15 Trillion Dept, with a forecast of increasing debt to $21 Trillion within ten years. The report also predicted that the Unemployment rate would edge up to 9% by the end of this year and 9.2% during the first three months of 2013.
Some of the contributing factors will be an increased enrollment in Medicaid from 67 Million in 2011 to 95 Million by 2022. Economic growth forecasts are also predicted to slow to 1%.
You can be certain that the Administration and
Democrats will tout the new job figures as confirmation that President Obama’s policies are working. Just imagine if now the Administration and Congress impose fairness by taxing Millionaires a minimum of 30%. Spin masters will have a hay day.
Lindsey Piegza, economist at FTN Financial, said: “It was a better-than-expected report, the strongest report that we’ve seen in quite some time.
“The big question is whether the reason we’re seeing the unemployment rate drop is because more and more people are dropping out of the labour force.
“I know the market wants to rally on this number but remember we need a minimum of 250,000 just to cover demographic change.” BBC