US unemployment rate drops further to 8.9%

The Labor Department has today revealed the unemployment rate in the US has fallen again from 9% in January to 8.9% in February.

It represents the third consecutive month that the rate has fallen with the economy creating 192,000 jobs in the month - far better than expectations.

However, the total number of unemployed people is currently at 13.7 million - almost double level prior to the recession.

President Barack Obama’s top economic adviser described the figures as an “encouraging” sign that the jobs market is getting back on track.

However, the results are somewhat overshadowed as Government spending cuts and surging oil prices threaten the recovery of the world’s largest economy.

Earlier this week, Federal Reserve chairman, Ben Bernanke, warned that a prolonged rise in oil prices would pose a danger to economic growth in the US.

In addition, outplacement firm Challenger, Gray and Christmas, said surging oil prices “could impact employers’ staffing decisions over the next six months.”

Discuss this in the Finance Markets forums

Story link: US unemployment rate drops further to 8.9%