US unemployment hits a five and a half-year low

04 November 2006

Mumbai: US unemployment rate touched a five and a half-year low in October with the addition of 92,000 jobs being added during the month. Hiring in the two previous months was revised up, indicates new government data.

The labour department said while 92,000 jobs were added in October — lower than the 125,000 that market analysts had forecast. Hiring in September and August was far stronger than was first estimated.

The department revised September's job-creation total upwards to 148,000, or nearly three times the 51,000 it reported a month ago, and said there were 230,000 new jobs in August instead of 188,000.

The unemployment rate fell in October to 4.4 per cent from 4.6 per cent in September. It was the lowest unemployment rate since 4.3 per cent in May 2001.

Average hourly earnings rose 0.4 per cent to $16.91 — higher than the anticipated 0.3 per cent — while the average work week edged up to 33.9 hours from 33.8. Average hourly earnings have risen by 3.9 per cent over the year, the department said.

This monthly report is calculated from two separate surveys, one of households and the other of businesses. The household survey showed that a whopping 437,000 more people were employed in October.