The US Labor department declared on Friday that the USA suffered 247,000 jobs losses during the last month. According to government reports on Friday, this was the smallest monthly toll since August last year and signifies that the recession is ending. But the recovery will still see thousands of jobs being lost and unemployment rate being high each month until next year.
The Labor Department’s latest figures come as a relief to the Obama administration, which has been facing criticism as more jobs continued being lost than the earlier projections it had made. Hourly earnings were on the up and the government said fewer jobs were lost this spring than initially estimated, as job losses for June were revised from 467,000 to 443,000. There was a slight increase in the length of the workweek as well.
Although the unemployment rate dropped from 9.5 percent to 9.4 percent, economists cautioned that it was due to many people giving up their search for work and leaving the labor force. Unemployment rate is still expected to reach a high of 10 percent before it comes down. But, administration officials saw Friday’s report as a proof that the American Recovery and Reinvestment Act, the $787 stimulus, was working, and that the economy would be on the revival in the coming few months.
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