Business, Finance & Economics

US unemployment falls to 9 percent



Bay Ismoyo

The US unemployment rate dropped to 9 percent in October despite a slow-down in hiring as employers faced uncertainty over the United States' future economic growth.

According to BBC News, the US economy added 80,000 new jobs in October, the fewest in four months. This was 15,000 less than economists had predicted, the Department of Labor reported. 

However, the US economy had added 158,000 new jobs in September, which was more than the 103,000 that had been forecasted.

Sluggish growth and high unemployment are some of the key challenges for President Obama, and the Republican candidates as the US enters an election year.

According to CBS News, the number of people applying for unemployment benefits dropped below 400,000 for only the third time this year, the government said. Applications would need to fall below 375,000 to signal sustained job gains, however. This level has not been reached since February.

According to Bloomberg News, treasuries fell after the unexpected decline in the US unemployment rate.

"It is a comforting number and is taking some of the steam out of Treasuries," Carl Lantz said. Lantz is the head of interest-rate strategy in New York at Credit Suisse AG, which is one of 21 primary dealers that trade with the Federal Reserve.

"The economy has weathered the economic shocks of the fall when the fear was that a lack of confidence would have restrain dehiring. But the situation is turning out to be not as bad as feared."