Investments: US Jobs Data Revised Upwards

Obama Tries To Push Jobs Act

Obama Tries To Push Jobs Act

September saw 103,000 jobs added to the US economy, more than most economists had expected. However, according to information from the Department of Labor, the unemployment rate was still 9.1%. Numbers were increased by striking workers returning to work, but also saw more job creation, revising data from both August and July.

American Jobs Act

The US President, Barack Obama set out a $405 billion, or £282 billion plan last month in order to create jobs. According to the government, the 9.1% unemployment rate is “unacceptably high”. In the White House blog, a statement read, “Clearly, we need faster economic growth to put Americans back to work. Today’s report underscores the president’s call for Congress to pass the American Jobs Act to put more money in the pockets of working and middle class families.”

Each job gain was seen in the private sector and employees that had been on strike form Verizon telecoms throughout August returned to work, representing 45,000 of the jobs. The number of jobs was 58,000, still higher than anticipated. In addition, the number of weekly hours increased.

However, despite this news, Tom Porcelli, chief US economist for RBC Capital Markets did not believe the economy was growing faster as a result, merely that the government was moving “away from the ledge”. Trading increased on Wall Street, with the Dow Jones increasing by 0.8% to 11,209—an 86 point gain when the news was revealed Friday.

Job Losses As Well

September also saw a loss of 34,000 jobs for the US government, with local government eliminating the jobs of teachers and school employees, as a part of the loss. In construction, retail, temporary help services and health care, jobs were created. However, the manufacturing industry saw a decline in the number of jobs for the second month in a row.

Data revealed in August had shown now new job creation amidst fears that the US could be falling back into another recession, but the data has now been revised. August saw a gain of 57,000 jobs in its revised data and July saw 127,000 extra jobs, up from 85,000.

The new “American Jobs Act” proposed large construction projects, schools and services funded by the government with tax cuts for employees and small businesses in order to increase attractiveness. The proposal is facing difficulty getting through Congress because Republicans have rejected plans for an increase on tax for the wealthy, which would have paid for the “American Jobs Act”.

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