Last month the United States employment growth has accelerated, causing the jobless rate to drop to eight point five percent. This is a strong sign that the economic recovery is gaining momentum. This is the lowest level of unemployment rates since the year of 2009 in February. This is great news for President Obama whose re-election hopes might hinge on what state the labor market is in. During his term as president, the Republican’s have stated that his economic policies were doing more harm than good but with the unemployment rate going down, this might give him some political protection.
Last year the United States added one point six million jobs, which is the most added since the year of 2006. The jobless rate peaked in October 2009 at ten percent but in the last four months it has dropped point six percentage points. To help sustain the recovery period President Obama has urged Congress to extend the two month payroll tax cut for the middle class tax payers throughout the year of 2012.
Employment does remain approximately six point one million below the pre-recession level and if the job growth of December would continue, it would still take approximately two and a half years to get all those jobs back. It is figured that for every job opening there are approximately four point three unemployed people trying for that job. According to figures, there are still approximately twenty-three point seven million people who are either underemployed or out of work in the United States.