Joy at US fall in unemployment

Unemployment in the United States unexpectedly fell in July, reversing a trend of growing joblessness and giving encouragement to plans to resurrect the economy.

Figures from the Bureau of Labour Statistics show that the rate of unemployment dropped marginally from 9.5% in June to 9.4% – the first recorded fall in 15 months.

Although representing only a small decline, the figures are politically significant and are likely to be used as evidence that President Barack Obama’s near-$800bn (€559bn) stimulus package is beginning to have an impact.

Economists had predicted the latest figures to continue with the trend of growing unemployment, possibly even going above the 10% mark.

Employers cut 247,000 jobs in July, the figures show, fewer than the 320,000 predicted and significantly lower than in the first few months of 2009.

The monthly lay-offs in the private sector were offset by those leaving the labour market permanently and job creation elsewhere.

In all, some 14.5 million Americans are now out of work. Since the recession began in December 2007, the US has seen 6.7 million people made unemployed.

But there is hope that the US economy is beginning to emerge from the depths of recession.

Today’s labour statistics offered some evidence that this is the case.

As well as the headline unemployment rate falling, figures showed that average workers’ hours had nudged up to 33.1 hours a week and salaries had improved.

In addition, job losses in May and June were revised downwards by the bureau.