Unemployment rate slips to 9% in January

Unemployment rate slips to 9% in January

According to the latest reports released by the government, the unemployment rate has fallen sharply for the second consecutive month thus giving positive signs about the labor market.

The rate has slipped to 9 percent in January from 9.4 percent in the month of December and in November the rate was 9.8 percent. In January around 600,000 people have got the job.

The number of jobs created by the employers in the month of January were just 36,000 while those expected by the forecasters was 4 times more than what has been created.

In an interview, Austan Goolsbee, chairman of the Council of Economic Advisers, said, "You never want to read too much into a single month's data," and added "It's certainly a good sign that the unemployment rate is coming down, but there will still likely be continued fluctuations going forward."

The analysts expected 145,000 jobs to be created in January but employers created only 36,000 of that.

According to official of Labor Department, 886,000 people have been kept away from jobs by snowstorms.

Gary Burtless, a senior fellow at the Brookings Institution who studies the labor market said, "The household survey shows robust employment growth and a sharp drop in the unemployment rate. It is wrong to think the truth must lie exactly halfway between these two possibilities. However, a betting man would not put all his money on just one of the surveys either."