The News Courier in Athens, Alabama

State and Nation

March 8, 2013

Job gains cut unemployment to 7.7 pct., 4-year low

— WASHINGTON (AP) — The American job market isn't just growing. It's accelerating.

Employers added 236,000 jobs in February and drove down the unemployment rate to 7.7 percent, its lowest level in more than four years. The gains signal that companies are confident enough in the economy to intensify hiring even in the face of tax increases and government spending cuts.

Last month capped a fourth-month hiring spree in which employers have added an average of 205,000 jobs a month. The hiring has been fueled by steady improvement in housing, auto sales, manufacturing and corporate profits, along with record-low borrowing rates.

Before the spree, employers added an average of 154,000 jobs from July through October and only 108,000 from April through June.

"The recovery is gathering momentum," Paul Ashworth, an economist at Capital Economics, said in a note to clients.

The gains could boost consumer spending, adding momentum to the U.S. recovery and helping troubled economies in Europe and Asia.

The U.S. economy is forecast to grow a modest 2 percent this year. Growth will likely be held back by uncertainty about the federal budget, higher Social Security taxes and across-the-board government spending cuts that kicked in March 1. And unemployment remains high nearly four years after the end of the Great Recession. Roughly 12 million people remain out of work.

The unemployment rate declined in February from 7.9 percent in January mostly because more people found work. Another factor was that 130,000 people without jobs stopped looking for work last month. The government doesn't count them as unemployed.

The last time unemployment was lower was December 2008, when it was 7.3 percent.

The unemployment rate is calculated from a survey of households. The number of jobs gained is derived from a separate survey of employers.

Hiring would be rising even faster if governments weren't shrinking their workforces, as they have been for nearly four years. Governments cut 10,000 jobs in February.

Text Only
State and Nation
Poll

Do you think Athens-Limestone County is better prepared than in April 2011 to provide shelter from a major tornado?

Yes
No
     View Results
Facebook
AP Video
SKorea Ferry Toll Hits 156, Search Gets Tougher Video Shows Possible Syrian Gas Attack Cubs Superfans Celebrate Wrigley's 100th Raw: Cattle Truck Overturns in Texas Admirers Flock to Dole During Kansas Homecoming Raw: Erupting Volcanoes in Guatemala and Peru Alibaba IPO Could Be Largest Ever for Tech Firm FBI Joining Probe of Suburban NY 'Swatting' Call U.S. Paratroopers in Poland, Amid Ukraine Crisis US Reviews Clemency for Certain Inmates Raw: Violence Erupts in Rio Near Olympic Venue Raw: Deadly Bombing in Egypt Raw: What's Inside a Commercial Jet Wheel Well Raw: Obama Arrives in Japan for State Visit Raw: Anti-Obama Activists Fight Manila Police Motels Near Disney Fighting Homeless Problem Michigan Man Sees Thanks to 'bionic Eye' S.C. Man Apologizes for Naked Walk in Wal-Mart Chief Mate: Crew Told to Escape After Passengers
Twitter Updates
Hyperlocal Search
Premier Guide
Find a business

Walking Fingers
Maps, Menus, Store hours, Coupons, and more...
Premier Guide
Stocks
Parade
Magazine

Click HERE to read all your Parade favorites including Hollywood Wire, Celebrity interviews and photo galleries, Food recipes and cooking tips, Games and lots more.
Business Marquee