US jobless rate dips to 8.9 per cent, nears 2-year low

US unemployment edged down to 8.9 per cent in February, the lowest level in nearly two years as employers added 192,000 jobs to the economy, dpa quoted the Labour Department's released report on Friday.
It marked the first time the jobless rate fell below 9 per cent
since April 2009. The rate dropped from 9 per cent in January and is
down from 9.8 per cent in November, a sign that the long-struggling
US labour market is beginning to show signs of a turnaround.
The February gains were led by sectors that have suffered since
the 2008-09 recession, including manufacturing and construction. The
192,000 net jobs added was the largest amount since May 2010.
'It's a very solid number,' said White House economic advisor
Austan Goolsbee told US broadcaster CNBC. 'What we see today is a
promising move forward.'
Yet US stocks fell slighly on opening in New York as the data was
in line with economists' expectations. There was also caution as the
size of the labour force remained unchanged, meaning many people who
quit during the recession remain reluctant to re-enter the market.
President Barack Obama has long been frustrated by a labour market
that has remained week despite the country's return to growth. The US
economy expanded by 2.8 per cent in 2010, yet unemployment remained
between 9-10 per cent through the year.
Policymakers have remained cautious about predicting a quick
strengthening of the job market. The Federal Reserve has forecast
that the unemployment rate will remain near its current level for the
remainder of 2011.