Year	Jan	Feb	Mar	Apr	May	Jun	Jul	Aug	Sep	Oct	Nov	Dec
2010	9.70
2009	7.70	8.20	8.60	8.90	9.40	9.50	9.40	9.70	9.80	10.10	10.00	10.00
2008	5.00	4.80	5.10	5.00	5.40	5.50	5.80	6.10	6.20	6.60	6.90	7.40
2007	4.60	4.50	4.40	4.50	4.40	4.60	4.60	4.60	4.70	4.70	4.70	5.00
2006	4.70	4.80	4.70	4.70	4.60	4.60	4.70	4.70	4.50	4.40	4.50	4.40

US Payrolls Fall in January, Unemployment at 9.7%
Published: 2/5/2010 8:38:28 AM By: TradingEconomics.com, Reuters

Employers unexpectedly cut 20,000 in January, but the unemployment rate surprisingly fell to a five-month low of 9.7 percent, according to a government report on Friday that hinted at some labor market improvement starting to take root.

The Labor Department said the economy shed 150,000 jobs in December, compared to 85,000 previously reported, but November was revised to a gain of 64,000, up from 4,000. Annual benchmark revisions to payrolls data showed the economy has purged 8.4 million jobs since the start of the recession in December 2007.

A sharp increase in the number of people giving up looking for work helped to depress the jobless rate. The number of 'discouraged job seekers' rose to 1.1 million in January from 734,000 a year ago.

With Americans increasingly anxious about high unemployment, President Barack Obama has declared that job creation will be his top priority in 2010.

Obama's fellow Democrats fear voters could punish them in November congressional elections if the administration fails to make headway in tackling the high jobless rate.

Financial markets have grown nervous about the prospect of unemployment in the United States remaining high for a long time. The economy resumed growth in the second half of 2009 and labor market healing is crucial for a self-sustaining economic recovery to take root.

The economy grew at a 5.7 percent rate in the fourth quarter, the fastest clip in six years. Growth was driven by businesses reducing their stock of unsold goods less aggressively that in previous quarters.

While job losses in prior months were steeper than previously thought, details of the January report supported views the blood bath has stopped.

Last month, the services sector added 40,000 jobs after shedding 96,000 positions. The figure included a rise in federal government employment, partly as a result of the hiring of staff for the 2010 Census. Temporary help employment rose 52,000, maintaining a rising trend seen in the past month.

Manufacturing payrolls rose 11,000 last month, the first gain since January 2007, after dropping 23,000 in December. But the construction sector, continued to struggle, losing 75,000 jobs, likely because of unusually cold weather. Construction payrolls fell 32,000 in December.

In another sign of labor market improvement, the average workweek unexpectedly rose to 33.3 hours, the highest level in a year, from 33.2 hours in December. Total average hourly earnings increased $18.89 from $18.84 in December.

United States Economic News

ADP Says U.S. Companies Cut Estimated 22,000 Jobs
Published: 2/3/2010 9:32:30 AM By: TradingEconomics.com, Bloomberg

Companies in the U.S. cut an estimated 22,000 jobs in January, in line with forecasts, according to data from a private report based on payrolls.

Despite Recent Growth, US Recovery is Still Weak
Published: 2/2/2010 12:59:10 PM By: Anna Fedec, contact@tradingeconomics.com

In the fourth quarter of 2009, the United States economy expanded at an annualized rate of 5.7% giving the impression that the recovery in world’s largest economy has been stronger than expected. Yet, growth was mainly due to inventory rebuilding and the recent economic expansion maybe short lived.

Economy in U.S. Grew at 5.7%
Published: 1/29/2010 9:26:28 AM By: TradingEconomics.com, Bloomberg

The economy in the U.S. expanded in the fourth quarter at the fastest pace in six years as factories cranked up assembly lines and companies increased investment in equipment and software.

US Federal Reserve Holds Rate Steady
Published: 1/27/2010 2:22:22 PM By: TradingEconomics.com, Federal Reserve

The Federal Reserve kept interest rates near zero and restated its intention to cease buying mortgage-backed securities in March.

Consumer Prices in U.S. Rose 0.1% in December
Published: 1/16/2010 2:42:20 PM By: TradingEconomics.com, Bloomberg

The cost of living in the U.S. slowed in December from a month earlier, indicating the economic recovery is showing few signs of stoking inflation.

Trade Deficit in U.S. Increased
Published: 1/12/2010 11:24:15 AM By: TradingEconomics.com, Bloomberg

The trade deficit in the U.S. widened in November more than anticipated as imports climbed faster than exports, pointing to a rebound in global demand that is fueling growth.

US Economy Sheds 85,000 Jobs in December
Published: 1/8/2010 8:42:00 AM By: TradingEconomics.com, Reuters

U.S. employers unexpectedly cut 85,000 jobs in December, government data showed on Friday, cooling optimism on the labor market's recovery and keeping pressure on President Barack Obama.

ADP Says U.S. Companies Cut Estimated 84,000 Jobs
Published: 1/6/2010 9:21:50 AM By: TradingEconomics.com, Bloomberg

Companies in the U.S. cut an estimated 84,000 jobs in December, according to a private report based on payroll data.

US Economy Grows 2.2% in Q3
Published: 12/22/2009 9:57:49 AM By: TradingEconomics.com, Reuters

The U.S. economy grew at a much slower pace than previously thought in the third quarter, restrained by weak business investment and a slightly more aggressive liquidation of inventories, data showed on Tuesday.

More news

Unemployment Rate Definition

The labour force is defined as the number of people employed plus the number unemployed but seeking work. The participation rate is the number of people in the labour force divided by the size of the adult civilian noninstitutional population (or by the population of working age that is not institutionalised). The nonlabour force includes those who are not looking for work, those who are institutionalised such as in prisons or psychiatric wards, stay-at home spouses, kids, and those serving in the military. The unemployment level is defined as the labour force minus the number of people currently employed. The unemployment rate is defined as the level of unemployment divided by the labour force. The employment rate is defined as the number of people currently employed divided by the adult population (or by the population of working age). In these statistics, self-employed people are counted as employed.

Variables like employment level, unemployment level, labour force, and unfilled vacancies are called stock variables because they measure a quantity at a point in time. They can be contrasted with flow variables which measure a quantity over a duration of time. Changes in the labour force are due to flow variables such as natural population growth, net immigration, new entrants, and retirements from the labour force. Changes in unemployment depend on: inflows made up of non-employed people starting to look for jobs and of employed people who lose their jobs and look for new ones; and outflows of people who find new employment and of people who stop looking for employment.

When looking at the overall macroeconomy, several types of unemployment have been identified, including:
Frictional unemployment — This reflects the fact that it takes time for people to find and settle into new jobs. If 12 individuals each take one month before they start a new job, the aggregate unemployment statistics will record this as a single unemployed worker. Technological change often reduces frictional unemployment, for example: the internet made job searches cheaper and more comprehensive.
Structural unemployment — This reflects a mismatch between the skills and other attributes of the labour force and those demanded by employers. If 4 workers each take six months off to re-train before they start a new job, the aggregate unemployment statistics will record this as two unemployed workers. Technological change often increases structural unemployment, for example: technological change might require workers to re-train.
Natural rate of unemployment — This is the summation of frictional and structural unemployment. It is the lowest rate of unemployment that a stable economy can expect to achieve, seeing as some frictional and structural unemployment is inevitable. Economists do not agree on the natural rate, with estimates ranging from 1% to 5%, or on its meaning — some associate it with "non-accelerating inflation". The estimated rate varies from country to country and from time to time.
Demand deficient unemployment — In Keynesian economics, any level of unemployment beyond the natural rate is most likely due to insufficient demand in the overall economy. During a recession, aggregate expenditure is deficient causing the underutilization of inputs (including labour). Aggregate expenditure (AE) can be increased, according to Keynes, by increasing consumption spending (C), increasing investment spending (I), increasing government spending (G), or increasing the net of exports minus imports (X?M). {AE = C + I + G + (X?M)} (source: wikipedia)