US jobless figures fall to give Obama election boost

UNEMPLOYMENT in the US fell dramatically in September to its lowest level in more than three years amid signs that the economy is adding jobs at a faster pace than previously thought.

Despite expectations for a slight rise to 8.2 per cent, the rate tumbled to 7.8 per cent, the lowest since President Barack Obama took office in January 2009. The figures were a boost for the incumbent, who is battling Republican nominee Mitt Romney in an election campaign with just one month left to go.

The main reason for the fall from the previous month’s reading of 8.1 per cent was a surge in the number of individuals reporting themselves as employed. This is based upon what is known as the household survey, and is generally regarded as the less reliable part of the monthly job figures.

The survey asks a series of questions such as whether an individual owns their own business or did any work for pay. Those who do – along with those doing unpaid work for a family business – are regarded as employed.

Non-farm payrolls – which measure how many jobs businesses say they added or cut – rose by a far more subdued 114,000.

However, together with upward revisions for July and August, government economists now estimate that employers added 146,000 jobs per month from July through to September. Though this still points to a sluggish economy, growth now appears to be marginally faster than was feared during the summer.

The number of unemployed Americans stood at 12.1 million, but, as in the UK, many of those with a job are part-time workers who would prefer full-time employment. The number of part-time workers who want a full-time job rose 7.5 per cent to 8.6 million people.