Barack Obama hails 'clear' trend of lower unemployment
08 January BBC
President Obama has cautiously hailed a "clear" trend of job growth,
and called on businesses to boost investment.
His remarks at a window manufacturer came as the US unemployment rate
dropped 0.4 points to 9.4% in December, the largest one-month drop since
1998.
Some 103,000 jobs were created last month, the Labor Department said,
although this was fewer than forecast. But Federal Reserve Chairman Ben
Bernanke warned employment could remain depressed for four to five more
years.
The lower unemployment rate, while cheering, came not only because
more people found jobs, but also because 260,000 had given up looking
and ceased being counted as unemployed.
Touring an energy-efficient window manufacturer in Maryland, Mr Obama
said the jobs report showed a clear trend towards economic growth.
He predicted a package of tax cuts forged with Republicans last month
would continue to boost hiring, and urged businesses who were thinking
about creating jobs to press ahead.
AdvertisementUS Labor Secretary Hilda Solis joined Katty Kay to
discuss the new jobs numbers "If you are planning on making investments
in the future, make them now and that will help us grow the economy," he
said.
"We want businesses to grow, we want this economy to grow and we want
to put people back to work."
At the US Senate, meanwhile, Federal Reserve chairman Ben Bernanke
warned the job market might not return to normal levels for another four
or five years.
He said the economy had entered a "self-sustaining recovery" powered
by growing consumer spending and robust business investment.
But, he added a warning: "Notwithstanding these hopeful signs...
[with] employers reportedly still reluctant to add to payrolls,
considerable time likely will be required before the unemployment rate
has returned to a more normal level.
"Persistently high unemployment, by damping household income and
confidence, could threaten the strength and sustainability of the
recovery."
According to official Department of Labor figures, seasonally
adjusted non-farm payroll employment increased by 103,000, with the
number of unemployed people dropping by 556,000 to 14.5 million.
Overall employment for October and November was revised to show
70,000 more job gains than earlier reported, and the unemployment rate
is now at its lowest since May 2009.
Private hiring increased in December by 113,000, while government
employment fell by 10,000.
Employment rose by 47,000 in the leisure and hospitality sector and
by 36,000 in healthcare, but was little changed in other major
industries, the Labor Department said. |