• 07
  • April
    2011

Last month, the unemployment rate fell to 8.8 percent, which is its lowest rate in two years. Because of the drop, March represented the second straight month in which the U.S. jobless rate saw a steady decrease. The statistic underscores a notable shift in the job market, and economists say that the employment gains will contribute to decreases in bankruptcy filings, foreclosures, and other indicators and effects of an unstable economy.

Over 216,000 new jobs were added in March, which added to the 194,000 new positions added in February, according to statistics reported by the U.S. Department of Labor. The two-month gain means that the unemployment rate is down a full percentage point since November, which is the largest four-month improvement recorded since 1984.

A separate statement from the Institute of Supply Management indicated that there was strong growth in factory job activity during March, though not as high as the seven-year peak hit in February.

The unemployment drop indicates that the labor market is strengthening despite early job market difficulties attributed to soaring energy prices and inclement weather in Tennessee and through much of the country. The reports, however, are not likely to take the Federal Reserve off its current monetary police course. According to a senior economist for BNP Paribas said that the findings are evidence of economic momentum, but also a sign that there is still a long road ahead to full economic recovery.

Over eight million jobs were lost during the recession, and experts say that the labor market must add approximately 275,000 new jobs each month in order to significantly impact the current pool of jobless Americans, which now totals 13.5 million.

Source: Reuters, "Employers step up hiring, jobless rate drops", Lucia Mutikani, 1 April 2011