U.S. Jobless Rate Falls to 7.8%, Lowest in Nearly 4 Years
After the debates, many political observers said that the remaining jobs reports would take on much more importance. If the jobs reports are bad, then President Obama is in trouble. If they’re good, then he’ll maintain his lead over Romney, or so goes the inside the Beltway thinking.
Today, Obama got some good news. The jobless rate fell to to 7.8 percent last month, dropping below 8 percent for the first time in nearly four years, and giving President Obama a strong boost a month out from elections.
The rate fell from 8.1 percent mainly because of the increase in the number of employed people. The number of people who said they were employed increased by an astronomical 873,000 — a sign that companies are beginning to hire again. Hiring increases in both August and July was both higher than expected.
Mr. Romney has been campaigning on the idea that the economy has sputtered under Obama, and has used as evidence a jobless rate which has consistently remained above 8%. Today’s job report changed all that.
In a statement released by his campaign, Romney said “This is not what a real recovery looks like. We created fewer jobs in September than in August, and fewer jobs in August than in July, and we’ve lost over 600,000 manufacturing jobs since President Obama took office. If not for all the people who have simply dropped out of the labor force, the real unemployment rate would be closer to 11%.”
In the last 12 months, the economy has gained an average of 150,000 jobs a month. This is not enough for the economy to be considered healthy, but it does show some improvement.
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